Jobs saved as collapsed fabrication firm bought

NORTHUMBERLAND jobs have been saved after a pipe and steelwork fabricator was acquired out of administration.

- TOM KEIGHLEY Business writer [e-mail]

Insolvency experts were called in to West Sleekburn-based Armson Engineering in recent weeks amid cashflow issues and a large debt owed to HMRC.

The five-year-old business which specialised in fabrication and maintenance of pipework, steelwork and mechanical plant equipment had encountered challenges on a large contract and with an invoice financing provider.

Despite efforts to broker a deal with HMRC, officials filed a winding up petition against loss-making Armson amid nearly £850,000 owed. Meanwhile, directors had put money into the firm to cover employees wages.

Administrators at FRP Advisory were subsequently appointed to the firm and, after a marketing effort, Armson’s assets and intellectual property were sold to BKA Engineering for £40,000. All 31 jobs were secured in the move, which sees Armson director Karen Armstrong now a director of BKA take control of the company.