Member Article

157 jobs lost as Rotherham defence manufacturer goes into administration

Rotherham-based metal manufacturers MTL Group Ltd have gone into administration after cash flow problems caused by a large overseas defence contract.

John Sumpton and Hunter Kelly of EY’s Restructuring team were appointed joint administrators of MTL Group Limited on 2 February 2015.

On 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.

146 employees have been retained to assist with ongoing operations whilst a purchaser is sought.

Employees affected by redundancy are being offered appropriate advice and support in making claims from the Redundancy Payments Office for outstanding wages, as well as redundancy and notice pay.

John Sumpton, joint administrator of MTL Group Limited, commented: “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.”

“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.

This was posted in Bdaily's Members' News section by Clare Burnett .