Jobs lost in Mechanical Facilities Services administration

20 April 2022 2 min. read

Doncaster-based Mechanical Facilities Services has appointed administrators from Interpath Advisory, after being unable to keep up with cashflow pressure. The news has seen all but six of the firm’s staff made redundant.

Founded in 2008, Mechanical Facilities Services operated as a mechanical and electrical contractor. Offering bespoke engineering solutions nationwide, and through sister companies in Ireland and Germany, the firm operated from a head office in Beckingham, Doncaster, along with five other leasehold premises across the UK.

Recently, the majority of the group’s work saw it enlisted as an M&E sub-contractor, in the building of large warehouse units. It had a turnover in excess of £50 million, according to the Yorkshire Post, however, with construction activity in the UK slowing, it came under financial distress – something exacerbated by a dispute with a client.

Jobs lost in Mechanical Facilities Services administration

Howard Smith and Chris Pole were appointed as Joint Administrators of Mechanical Facilities Services in early April. According to them, the company “came under increasing cashflow pressure in the weeks prior to the appointment as a result of a dispute on a large contract” – and with no resolution imminent, the directors made the decision to cease to trade; placing the company into administration.

A statement from the administrators added that upon appointment, the firm had 75 employees. Of those, only six were retained to assist with the wind-down of the business. Meanwhile, the remaining 69 employees were made redundant.

Howard Smith, a Managing Director at Interpath Advisory, said, “Our immediate priority is to assist those employees who have been made redundant in making claims to the Redundancy Payments Service. We will also be seeking purchasers for the company’s assets, including its properties, plant, machinery and vehicles.”

The joint administrators are now seeking to realise the company’s assets. These include but are not limited to, book debts, a freehold property, vehicles, tooling and office equipment. Interested parties are encouraged to contact Interpath as soon as possible.