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38 jobs lost as historic boiler firm collapses

An historic Black Country boiler company has collapsed into administration, wiping out the jobs of its 38-strong workforce.

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It comes just 18 months after Robey Boilers Supplies and Services was saved from a previous administration in a buyout by its own management.

Meanwhile a Cradley Heath-based company, which supplies security and surveillance systems to more than 4,000 commercial sites, is planning to shed more than 50 jobs.

Defence Security Systems at Sapcote Trading Estate, Powke Lane, currently employs 98.

In 2014 bosses at the former Robey Wellman business, now Robey Boilers Supplies and Services, put together a deal to buy the company, saving 52 jobs at the Newfield Road factory.

But last week administrators from Birmingham firm Smith Cooper were called in by directors as the company struggled amid a fresh crisis.

The reasons for the latest collapse are unclear, but Richard Tonks, of Smith Cooper, said the firm had been appointed as administrators on Tuesday and had immediately shut the business down, making all its 38 employees redundant.

Documents filed at Companies House show the company had changed its name twice in August last year, most recently to Robey Boilers Supplies and Services.

It designed, made and maintained boilers and furnace equipment for a wide range of businesses and NHS trusts.

The company has been based at the Oldbury site for more than 150 years, tracing its roots all the way back to 1840 and the Dudley iron boat and boilermaking firm of Danks of Netherton.

Corporate services director at Defence Security Systems, Clare Stewart, said that an official collective consultation process had begun over redundancies.

She said: "There are 92 people at risk with the potential to make 54 redundancies."

Defence Security Systems moved to its present home from Rounds Green Road, Oldbury, more than a year ago.

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