The Wigan-based manufacturing company, Eiffel Steelworks, has entered administration putting 60 jobs at risk. Due to tough market conditions and a decline in trade, Eiffel suffered a £1.3 million loss in turnover, resulting in liabilities of £4.2 million.
Having worked on the Olympic Stadium, Canary Wharf and Heathrow Airport, the company has been looking to its owners, Eiffel UK (the Subsidiary of French company, Eiffage Construction Metallique) for support.
Matthew Dunham and Adam Stephens from Smith & Williamson were appointed joint administrators earlier this week and are now looking to secure a buyer for the company.
Dunham said, “Eiffel Steelworks is a well-respected business which has been adversely impacted by difficult market conditions. It has significant levels of work in the pipeline and a highly skilled workforce”.
“We are working in conjunction with all key stakeholders to try and save the business and identify a suitable purchaser in order to sell it as a going concern.”
If the administrators can find a suitable buyer during the administration process, this will be the best outcome for the business as it will be able to continue running, safeguarding employees’ jobs at the same time.
Administration is also a powerful way to stop legal actions from aggressive creditors, ensuring restructuring plans can be prepared to improve the business.
UPDATE 11th December: Eiffel Steelworks has been bought by Bury-based William Hare Group - a great result all around!