AN ENGINEERING firm that has been in business for more than 30 years has gone into administration.
Rimor, based in Parklands Industrial Estate, Forest Road, Denmead, made the announcement through a statement on its website.
It said: ‘Daniel Francis Butters and Richard Michael Hawes of Deloitte LLP were appointed joint administrators of Rimor Limited and Willoughby Limited on March 30. The affairs, business and assets of the companies are being managed by the joint administrators.’
The joint administrators plan to trade the business in the short term, retaining 18 of the firm’s 45 employees to assist – meaning 27 redundancies were announced today.
Dan Butters, joint administrator, said: ‘This engineering company has struggled to adapt its model to the current climate of low oil prices. We are still looking for a buyer, but at this stage realistically an orderly closedown is the most likely option.’
He said the intention is to complete the current work in progress before commencing the closedown.
Rimor, a precision engineering company that makes components for the aerospace, hydraulics, defence and oil and gas sectors, was established in 1979.
In 2014 it looked at moving its 70,000 sq ft manufacturing space to Portsmouth – and said the move would create an additional 80 jobs – although this did not happen.
At the time, about 200 people were working for the company.
Paul Mason, the former managing director of Rimor, said the proposed move had come about as the company had decided to focus on subsea oil and gas.
Mr Mason and finance director Scott Bushby were supported by a private equity firm in June 2013 in a management buy-out of Rimor Limited.
Following the buy-out, the companies suffered a difficult period of trading due to falling oil prices and the directors made the decision to put the companies into administration.
The news has hit some contractors, as well as employees, who are now out of pocket while they wait for the administrators.
One contractor, who is owed more than £5,000, said: ‘We have potentially lost thousands. We have been told that the bank pulled the plug on Rimor despite their own private equity firm part-owning it.
‘I think the way the banks made sure they got their dividends last year despite the state Rimor was in is disappointing.
‘We will now have to fish in the prescribed part whilst the bank feeds from the carcass of the company yet further.’
Rimor has been approached for comment.
n Have you been affected by the news? Contact business editor Kimberley Barber on firstname.lastname@example.org or call (023) 9262 2132.