More than 150 staff have been made redundant at a Yorkshire-based manufacturing firm which has entered administration.
John Sumpton and Hunter Kelly of EY’s restructuring team were today appointed joint administrators of MTL Group, a Rotherham-based contract manufacturing specialist in the metal sector.
John Sumpton, the joint administrator of MTL Group Limited, said: “Although the company was historically profitable, it has encountered difficulties on a large overseas defence contract which resulted in losses and cash flow problems. Despite best efforts to secure new investment or a sale of the company, the immediate cash flow pressures left MTL Group unable to meet its creditor obligations and the directors took steps to appoint administrators. We are assessing our options to keep the facility operating in the short term whilst seeking a buyer for the business and are continuing to provide product to certain customers. We would encourage any interested parties to come forward.”
On the appointment of the administrators, a total of 157 employees were made redundant across the company’s head office and manufacturing facility in Rotherham, South Yorkshire.
The administrators confirmed that 146 employees have been retained to help with ongoing operations while a purchaser is sought.
Mr Sumpton said: “It is with regret that 157 people have been made redundant. We will work with those affected to help them claim outstanding wages and other payments from the redundancy payments office.”
Any parties interested in acquiring assets of MTL Group Limited should contact the joint administrators.