A 30-year-old Peterhead shotblasting firm has gone bust, with most of the jobs among a 13-strong workforce axed.
Administrators said GCG Shotblasting Services was a casualty of Covid after it struggled to recover from disruption caused by the pandemic.
Blair Nimmo and Geoff Jacobs, of Interpath Advisory, were appointed joint administrators on Monday.
This is, unfortunately, another company that has been adversely impacted as a result of Covid-19 delays and debt build up.”
Blair Nimmo, chief executive, Interpath advisory.
GCG Shotblasting Services operated from its own bespoke Peterhead facilities, as well as client locations.
It specialised in protective coatings for assets on and offshore, alongside other protection and maintenance work.
The firm had expanded its trading activities in recent years, while also investing in research and development to broaden its service offering.
Covid started firm’s collapse
Interpath said a reduction in on-site work due to lockdown restrictions and the cancellation of contracts stemming from Covid-19 “significantly” impacted revenue.
This and a fixed cost base led to losses and cash flow difficulties, KPMG’s former UK restructuring practice added.
Despite a recent uptick in activity and efforts made by the directors to turn the position round, there was just not enough cash to meet ongoing commitments and increased debt levels, Interpath said.
GCG Shotblasting Services ran out of options, unable to secure additional funding or investment, and went into voluntary administration.
Interpath said it was impossible for the business to keep trading, so most of its 13 employees were made redundant on Monday.
A few workers have been kept on for a short period to help with administrative matters.
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Blair Nimmo, joint administrator and chief executive, Interpath, said: “Despite the best efforts of the directors and improving activity across the market, this is, unfortunately, another company that has been adversely impacted as a result of Covid-19 delays and debt build-up.”
Asset sale
Geoff Jacobs, the joint administrator and managing director, Interpath, said: “This is a disappointing outcome for a long-established family-run business.
“We will now take steps to support the workforce and look to secure a sale of the assets, comprising primarily its property, plant and machinery, well-known business name, order book, work in progress and customer list. Interested parties should make contact in early course.”
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