AN oil and gas services business that has operated for more than half a century has fallen into administration.
Jimmy Saunders and Michael Lennon, both of Kroll, have been appointed joint administrators of Pipeline Engineering & Supply Co.
The company was headquartered in Catterick, North Yorkshire, with operations in Aberdeen and Dubai, and operated predominantly in the oil and gas sector.
The company, which employed 83 in Aberdeen, is a UK subsidiary of Circor International Inc., which is listed on the New York Stock Exchange.
The business was well established, operating for over 50 years and was a world leader in the design, manufacture and testing of pipeline products.
The administrator said that the group "had recently reported accounting irregularities in financial statements of the company, and this led to a detailed strategic review of options and underlying performance ... this included a sale process for the company and its business and assets, but no buyer was forthcoming".
Mr Saunders said: “The business was loss making as its cost base and infrastructure were not aligned to revenues.
"The group has made substantial investment into the company but together with the current economic uncertainty and cost inflation in manufacturing the group was unfortunately unable to continue to provide financial support.”
The company has ceased to trade with immediate effect and the joint administrators are working with the relevant authorities to provide support to the employees.
The appointment has no impact on the remainder of the group’s businesses in the United Kingdom.
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