All staff at steel fabricator Cleveland Bridge face redundancy once production work at the business ceases, after its administrator warned the search for a buyer looked bleak.
Cleveland Bridge went into administration in July this year, with administrator FRP immediately starting a search for a buyer who could maintain the business as a going concern.
Meanwhile, the firm restarted production in August, after terms were agreed with customers.
But FRP said negotiations with a potential purchaser of the business had foundered.
In a statement, FRP said: “The administrators have continued to liaise with a potential purchaser for the business and assets, however, assurances required from the buyer to confirm their ability to proceed have not been received. While the administrators will keep this dialogue open, they must prepare for the prospect that the business will cease to trade following completion of final production in week commencing 20 September 2021.”
A total of 104 staff are currently working on site, with a further 29 on furlough. FRP added: “Further redundancies will now be made with all remaining staff made redundant when production ceases.”
Martyn Pullin, partner at FRP and joint administrator of Cleveland Bridge UK, said: “We have worked tirelessly in the hope of finding a buyer who would continue to operate Cleveland Bridge as a going concern, running a thorough and extensive sales process. However, with no current viable offers remaining to take the business on, we must now prepare for a property and asset sale.
“Regrettably, production will finally end on site later this month. Our specialist employment team will continue to work closely with the staff, their representatives, unions and the council to support all the workers through what we know has been an extremely challenging time.”
