A Derbyshire engineering firm has been bought out of administration by an existing director saving 18 jobs at the works.
DC Steelfabs specialised in metal fabrications for customers in the energy, mining, transportation and construction industries.
The company, based on Speedwell Industrial Estate in Staveley, called in administrators from Sheffield-headquartered Wilson Field after experiencing problems with cash flow and had accumulated arrears with HMRC and other creditors.
Andy Wood and Robert Dymond were appointed as joint administrators on November 8th and concluded a pre-pack sale to Steel Elevations Limited – a company owned and managed by former D.C. Steelfabs’ director Stephen Shaw.
Andy Wood, Associate Director at Wilson Field said: “Problems first arose at D.C. Steelfabs as a result of a combination of issues including a sizeable unprofitable contract and issues with the quality of work undertaken by agency staff.
“The company struggled with cash flow over the past couple of years and had accumulated arrears with creditors and in particular HMRC, who issued a winding up petition in October 2017, which the company was unable to meet.
“The pre-packaged sale to Steel Elevations Limited, which will be owned and managed by one of the former directors of DC Steel Fabs, saves all 18 jobs.”
As well as saving jobs, estimated redundancy and holiday pay totalling £52,242 were mitigated resulting in a better return to creditors.
Valuations and advice on asset disposal was handled by Charterfields.
DC Steelfabs had offered a range of fabrication services to a wide industrial base since 1984. It relocated to a new 20,000 sq ft premises, complete with overhead cranes and new paint shop, in Staveley last year due to increased demand for its services, doubling its work capacity and further enhancing its manufacturing capabilities.
The company, which holds the ISO9001 Quality Certification, offered a wide and comprehensive range of engineering services including fabrication, welding, coded welding, pipework and structural and architectural steelwork.
It also offered plant maintenance allowing for on site repairs and work.