Liquidators appointed at Moray engineering firm

Moray engineeringA Moray engineering firm has fallen into liquidation with the loss of over 30 jobs.

Blair Nimmo and Geoff Jacobs of KPMG in Scotland have been appointed as joint provisional liquidators of Brown Engineering (Fochabers) Limited.

The pair took over the running of the company, which was incorporated in 1978, on 21 September.

At the time of KPMG’s appointment the company had 33 employees but all but one were made redundant with immediate effect.

The remaining employee has been retained to assist in realising the company’s assets.

Brown Engineering operated from leasehold premises in Fochabers, Moray, specialising in the manufacture, installation and maintenance of various plant and machinery and pipework for the distilling and malting, and oil and gas industries.

KPMG said recent years has seen the firm suffer from increased competition in the distilling and malting industry, together with a fall in demand for its services in the oil and gas sector.

As a result of declining sales and smaller margins, losses ensued and cash flow issues intensified.

Despite significant investment from the directors over several years, trading deteriorated further and the company could no longer meet its liabilities.

The Joint Provisional Liquidators are rapidly exploring whether an early sale of Brown Engineering’s assets can be secured.

Blair Nimmo, head of restructuring for KPMG in the UK, said: “It is sad to see another engineering firm, which has such a long history and heritage, enter liquidation, together with the loss of employment to the local area. We will do everything we can to seek a buyer for the company’s assets to maximise recoveries for creditors. We would encourage any party who has an interest in acquiring the company’s assets to contact us as soon as possible.

“KPMG is working with the employees and the relevant government agencies to ensure that the full range of support is available to all those affected.”

Anyone with an interest in buying the assets of the company should contact Geoff Jacobs, Joint Provisional Liquidator, on 01224 591000.

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