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Job losses as Weymouth engineering firm put into adminstration
4:01pm Wednesday 20th March 2013 in Latest
Around half of the workforce at a Weymouth engineering firm has been slashed after the company went into administration.
Park Precision Engineering Limited will continue to operate on a reduced scale while all options are considered, but administrators confirmed that 24 of the firm’s 50 employees have been made redundant.
Administators had earlier incorrectly stated that 50 members of staff had been made redundant.
Around 26 remain employed at the company, which is based in Surrey Close on the Granby Industrial Estate, and started life as Park Engineering 27 years ago.
Company director Ben Edwards said: “Despite the support of shareholders, funders and other key stakeholders, the tough economic conditions affecting the manufacturing industry have made it difficult to resolve the company’s financial position.
“We have appointed administrators in order to protect the company and its creditors and we will now assist administrators in exploring all options available to them in order to obtain the best outcome possible.”
Geoffrey Bouchier and Benjamin Wiles, of advisory and investment banking firm Duff and Phelps, have been appointed joint administrators of the Weymouth company.
A spokesman for Duff and Phelps said: “The company will continue to operate, on a reduced scale, while the administrators review all potential opportunities available to maximise the realisations for the company’s creditors, including a sale of the business.
“Outstanding customer orders continue to be fulfilled.”
Park Precision provides contract manufacturing services for sectors as diverse as subsea, defence, printing, electronic, food and renewable energy.
The move comes as a blow after directors Mr Edwards and Richard Archer – former apprentices – managed to save the firm in 2010 when 24 workers lost their jobs after the company went into administration. They renamed the company Park Precision.
Mickey Jones, of DJ Property, the firm which rents the property to Park Precision, described Mr Edwards and Mr Archer as ‘very able young men’.
He said: “I am sure they will have a future in engineering but it is a sad thing to happen because people have lost their jobs and I’m sure other businesses will lose money if this one fails.
“The fact that there has been a short term bump in the road does not mean that someone else can’t re-employ the workers and put money back into it.”
He added: “It is a good business with good employees, so this could be an opportunity for whoever acquires it from the administrators.”
The firm was founded in 1986 and sold as Park Engineering Group LLP by owners Dave Higson and Mick Archer in April 2008.
New owners Peter Tarrant and Allan Edwards renamed the company Park Manufacturing Ltd.
Mark Blunden, president of the Weymouth and Portland Chamber of Commerce, said it was ‘crucial’ that businesses were supported as much as possible.
He said: “Any time any business disappears it is not good news for the town, and I hope a buyer comes in.”