By Future of foundry in doubt.
The future of an historic foundry in Scunthorpe is under doubt after the company went into administration today.
Bonds Group, which owns Bonds Heavy Castings on Dawes Lane has called in the administrators after what it describes as “significant cash flow difficulties as a result of trading downturns and restrictive credit terms with key suppliers.”
Clare Boardman and Adrian Peter Berry, both partners of Deloitte LLP, we’re appointed Joint Administrators’ of Bonds Foundry Limited (the “Company”) today – 20th December 2019.
The Joint Administrators’ were also appointed over Bonds Foundry Company Limited; Bonds Precision Castings Limited; Darwin Holdings Limited and Bondshold Limited.
It’s understood around 80 jobs are affected at the Scunthorpe foundry alone.
In documents seen by Gi Scunthorpe News it says “The Bond Group has been adversely impacted by direct exposure to high energy prices in the UK, reliance on the oil and gas sector and Brexit uncertainty. ”
Staff have been told they are not being made redundant at the present time and should continue to go to work as normal up to the planned seasonal shut down which begins on 24th December, they have also been assured funds have been made available to pay December’s wages.
The Joint Administrators’ will work over the seasonal shut down period and into the New Year to explore the possibility of a sale of all of parts of the business.
The administrator adds, “given the current financial position of the Company and the limited funding available to the Joint Administrators’ to continue to trade the Company it is likely in the absence of a sale of the business the Company will cease to trade with all employees being made redundant.’
The Dawes Lane foundry dates back to 1916 and many people will remember it being called Firth Brown Castings, it was later owned by Bradken UK and in October 2016 Bondshold, supported by North Lincolnshire Council, purchased the Scunthorpe foundry with development grants of £500k from the British Steel Support Fund.
Contact Gi Scunthorpe News
Email us: scunthorpenews@gi-media.co.uk
