Jobs lost as specialised plant firm goes into administration
Administrators have been appointed to TXM Plant Ltd (Image credit: Pixabay)
About 150 employees have been made redundant at a Wigan-based supplier of road-rail vehicles, it has been confirmed.
TXM Plant Ltd, Equipment and Track Solutions Ltd and Bacchus Newco provides operated road-rail vehicles to UK rail contractors involved in track maintenance, renewal, and other infrastructure projects from seven depots across England.
Clare Boardman and Kristian Shuttleworth of Teneo Financial Advisory Limited have been appointed as joint administrators of the group after it faced challenges in recent months, with customer demand falling in the face of industry wide budgetary constraints.
Teneo said the group had experienced continued cost pressures due to persistent high inflation and increased interest rates.
The group has been exploring multiple options to support the business, including raising additional capital, refinancing existing debt, and running a sale process. However, none of these efforts were successful and the directors have therefore taken the difficult decision to appoint administrators.
Following their appointment, the joint administrators are working with all stakeholders including key customers to investigate the possibility of a sale or, alternatively, facilitate an orderly wind-down of the business, with the retention of about 45 employees to manage this process.
But approximately150 employees are subject to redundancy. The administrators said they are communicating with all employees and working closely with the Redundancy Payments Service to support employees.
Joint administrator Kristian Shuttleworth said: "This is a very difficult time for employees, and we will do all that we can to support them over the coming weeks, including speaking to the Job Centre Rapid Response Unit as a matter of urgency and liaising with the insolvency service to expedite payments due under the Redundancy Payment Service."
Advertisement[1]References
- ^ Advertisement (www.insidermedia.com)