16 jobs saved as engineering firm is sold out of administration
A total of 16 jobs have been saved after a long-established Bristol-based engineering company went into administration.
Melhuish & Bateman Limited, based across three sites on the Flowers Hill Industrial Estate in Brislington, near Bristol, went into administration on October 21 and appointed Gavin Savage and Simon Haskew, of business recovery specialist Begbies Traynor’s Southampton and Bristol offices respectively, as joint administrators.
Melhuish & Bateman Limited comprised two distinct businesses; an engineering business and a fabrication/construction business.
Immediately after Begbies Traynor’s appointment, the engineering business and certain assets were sold by way of a pre-pack sale to ASL Precision Sheet Metal Limited, an associated company.
There will unfortunately be 12 redundancies as a result of the closure of the construction business and these are a mixture of full and part-time fabrication and administration positions.
Three employees have been retained by the company to assist the administrators in extracting value from the work in progress and outstanding construction debts.
The company’s difficulties arose from cash flow problems and one particular construction contract against which a substantial liquidated claim had been made.
Mr Haskew said: “Naturally, it’s a difficult time for the 12 people who are to lose their jobs and everything is being done to assist them. But we are happy to report that we have managed to put the engineering business on a sustainable footing and safeguard more than half of the jobs.”
Paul Salter, on behalf of ASL, commented: “We have been able to retain our skilled workforce and have the support of our major customers and suppliers. We are confident that, as the economy continues to pick up, the engineering business is now in a good position to prosper again and continue to offer high quality service. ”
Melhuish & Bateman Limited was established in 1975 and specialised in sheet metalwork, laser profiling, structural fabrication and architectural fabrication.
Simon has over 25 years mid-market corporate restructuring and insolvency experience across a wide range of industry sectors, as well as broad experience in all aspects of personal insolvency. He joined Begbies Traynor as a partner in 1999 after a formative career with Ernst & Young in Bristol and London. He is a member of the R3 General Technical Committee and recently served as the Examiner of the “rescue” paper for the JIEB exam.