66 jobs lost as Cradley Heath engineering firm Mechatherm International goes into administration

A Cradley Heath based engineering business has gone into administration with the loss of 66 jobs.

Helen Wheeler-Jones, Timothy Andrew Higgins and Edward Williams of pwc were appointed joint administrators of Mechatherm International Limited, based on the Waterfall Trading Estate, on July 24.

The business, which specialises in the design, manufacture and installation of industrial furnaces and aluminium casthouse equipment across numerous high profile projects in international locations, employed 70 people.

A statement issued by the administrators said: “Following a period of significant financial strain arising from contract losses, increasing creditor pressure and constrained liquidity, the company had been pursuing opportunities to secure a long-term future through a sale of all or part of the business.

“Despite a comprehensive marketing process, no viable offers were received for the business and the company entered administration on July 24.”

Following their appointment, the joint administrators completed a sale of certain intellectual property assets to Thermserve Limited. Due to the nature of the asset sale, however, it was not possible to save any roles within the company and as a result 66 employees have been made redundant.

Four employees have been retained to support the joint administrators’ in winding down the company's operations for a short period.

Helen Wheeler-Jones, joint administrator and director at PwC, said: “Despite efforts to secure a sale of all or part of the business, no viable offers were received and the company entered administration. As a result, 66 employees have been made redundant. We know how difficult and unsettling this news will be for those affected and are providing them with appropriate support.

“We are working closely with the Redundancy Payments Service to ensure employees can access their statutory entitlements as soon as possible.”