37 jobs go at Metalysis despite interest from buyers
Administrators have made 37 people redundant at powdered metals company Metalysis despite an “encouraging level of interest in the business.”
Staff, who had been sent home last Monday, received an email on Friday evening confirming they were out of a job.
Officials said they had received a “wide number” of enquiries but none had advanced to the point of putting in cash.
Metalysis collapsed after failing to land new funding before it started generating significant revenue. Set up in 2001, it had £92m from investors.
The firm, which owns a fast, cheap and green method of creating rare metal powders had two sites in Rotherham: a Discovery Centre on the Advanced Manufacturing Park and a factory in Wath.
Meadowhall Sheffield: Bosses give update on talks with potential occupier for giant Debenhams unit
Miller & Carter: Work starts on 20-bed Innkeeper's Lodge and Steakhouse restaurant in Sheffield city centre
Cole Brothers Sheffield: New future for former John Lewis department store is confirmed
Cost of living crisis: Sheffield shopkeeper forced to take second job to make ends meet as costs spiral
Kings Tower Sheffield: 40-storey 'student' block planned for High Street branded 'farcical'
Furnace operator Simon Cannon lost his job after five years at the company.
He said the first sign of trouble was when the 60 staff were asked to take a 20 per cent pay cut in March.
He added: “It’s come as a big shock, we all thought Metalysis was going to be around for a long time.
“It was a brilliant company to work for and I’m sad, a lot of good people worked there.
“We were still working on research and trying to licence the method, I believe. I don’t think we had got to the point where we sold anything, or we’d still be in a job.
“Apparently there were three potential buyers but I think the firm’s chances are about 50:50.”
Mr Cannon said he visited the Wath site to speak to administrators about claiming pay. Some 20 people had been retained to ‘babysit’ the factory, he said.
Administrator Eddie Williams of Grant Thornton said redundancies were necessary, but due to the level of interest there could be further developments.
He added: “Unfortunately, our discussions have not advanced to the point where the funding is in place to support the ongoing workforce.
“We will look to progress these discussions wherever possible but without funding, regrettably, I have no alternative than to make these redundancies.
“I would like to thank the workforce for their ongoing support since our appointment which has allowed interest to progress.
“We will look to provide support at this difficult time, and I am disappointed we have had to make this difficult decision.
“Given the overall level of interest there may be further developments and we will continue to explore every option in respect of this innovative technology.”