More than 150 jobs lost as MTL Group enters administration
MORE than 150 jobs have been lost after a manufacturing firm called in administrators.
Brinsworth-based MTL Group had trouble with an overseas defence contract which led to losses.
John Sumpton and Hunter Kelly from insolvency firm EY have been appointed joint administrators.
Mr Sumpton said: “Although the company was historically profitable, it has encountered difficulties on a large overseas defence contract which resulted in losses and cash flow problems.
“Despite best efforts to secure new investment or a sale of the company, the immediate cash flow pressures left MTL Group unable to meet its creditor obligations.
“We are assessing our options to keep the facility operating in the short term while seeking a buyer for the business and are continuing to provide product to certain customers.
“We would encourage any interested parties to come forward.”
Bringing in the administrators means 157 redundancies at the head office and manufacturing facility.
Of these, 146 staff have been retained to help with ongoing operations while a buyer is sought.
EY said employees affected by redundancy were being offered appropriate advice and support in making claims for owed wages and notice pay.
Mr Sumpton added: “It is with regret that 157 people have been made redundant.
“We will work with those affected to help them claim outstanding wages and other payments from the Redundancy Payments Office.”