Fife engineering firm goes bust with loss of 16 jobs

A total of 16 jobs have been lost at the Glenrothes based firm.A total of 16 jobs have been lost at the Glenrothes based firm.
A total of 16 jobs have been lost at the Glenrothes based firm.
A Fife manufacturing firm has gone into liquidation with the loss of 16 jobs.

Pipe and Piling Supplies Ltd, which produces steel foundation piles and overhead structures, with bases in Glenrothes and Bridlington in Yorkshire, has ceased trading with immediate effect.

Administration were called in this week after a key contract with Network Rail was delayed causing a cashflow crisis at the company.

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Just six staff remained at the Glenrothes firm after adverse trading conditions forced the business to lay off 10 employees last month.

The remaining employees have now been made redundant after joint administrators Tom MacLennan and Iain Fraser of FRP Advisory were brought in.

The company which manufactured primarily for the rail infrastructure market, had a turnover of £23.5 million in the year to February 2016 and £17.9m in the year to February 2017.

Tom MacLennan, joint administrator, 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.

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“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.”