Administrators called at Fife rail infrastructure firm
Pipe & Piling Supplies Ltd has gone into administration after a key contract with Network Rail was delayed causing a cashflow crisis at the company.
Just six staff remained at the Glenrothes firm after adverse trading conditions forced the business to lay off 10 employees in recent weeks.
The remaining employees have now been made redundant after joint administrators Tom MacLennan and Iain Fraser of FRP Advisory were brought in and the business was immediately closed down.
The company manufactured steel foundation piles and overhead structures, primarily for the rail infrastructure market and has bases in Glenrothes in Fife and Bridlington in East Yorkshire.
It had 16 staff and a turnover of £23.5 million in the year to February 2016 and £17.9m in the year to February 2017.
Joint administrator Tom MacLennan said: “Pipe and Piling Supplies was a well-established provider to the rail infrastructure market and had been contracted to work on the major Network Rail infrastructure maintenance contract.
“Unfortunately, after a delay in this contract the company was forced to seek to diversify its activities.
“This has ultimately proved unsuccessful, resulting in significant cashflow difficulties which unfortunately could not be resolved.
“As joint administrators we have appointed specialist construction agents to assist in reviewing the company’s remaining contracts and are focused on maximising asset realisations and debtor collections, as well as working closely with all agencies, including the Redundancy Payments Office, to ensure that employees receive every support at this difficult time.”