Brexit fears blamed for drop in orders that plunged Grantham engineers into crisis
Uncertainty caused by the EU referendum has been blamed for the closure of a Grantham factory.
Seven people have been made redundant after SST Process Engineering, in Autumn Park, Dysart Road, went into administration.
It is claimed that many of the firm’s customers had owners based on the European mainland and were fearful of a Brexit vote and as a result cut their orders.
Adrian Allen and Steven Law of RSM Restructuring Advisory LLP were appointed joint administrators for the firm, which manufactures fabricated metal products.
Mr Allen, a partner with with RSM Restructuring, said: “A high percentage of the company’s client base are owned by European parent companies and concerns over a Brexit significantly reduced the number of pipeline orders for the Grantham-based business.
“This triggered the need to place the company into administration and protect the assets for the benefit of the company’s creditors.
Concerns over a Brexit significantly reduced the number of pipeline orders for the Grantham-based business.
He said: “We continue to work with our professional advisers to assess our options with a view to maximising realisations for creditors.”
The administrators are working with agents John Pye & Sons Ltd to realise the company’s assets.
A public viewing of the company will take place on July 8 and an online auction is intended to run until close of play on Monday.
Mr Allen said the decision to appoint administrators was made following a period of reduced activity and limited orders due to uncertainty in the market caused by the EU referendum, and the potential Brexit, following which the directors concluded that the business was no longer viable.
An RSM spokesman said, all seven staff have been made redundant and the business had ceased trading and was closed.
Darren Joint, chair of the Grantham Business Club, said: “It is disappointing when a company like this closes.
“Following the referendum the feeling at business forums is glum at the moment.
“I suspect we could see more closures of firms that are already in a precarious position.
“Stronger companies will be better positioned to cope.”