Belmar Engineering: Scottish engineering firm collapses with loss of nearly 50 jobs

Belmar Engineering was established in 1975 and operated from a 37,000-square-foot workshop producing components for subsea systems, among other things. Pressures of increased international competition, losses in recent years and falling orders are cited as reasons for the collapse.

Staff were informed of the situation at a meeting on Tuesday and a letter was also sent to all known creditors - around 80 in total made up of trade suppliers, utility providers, finance companies and HMRC.

Michael Reid, an insolvency expert at accountancy group MHA, has been appointed liquidator for Belmar Engineering.

There is believed to be “several million pounds” owed to creditors. However, the final amount they will receive will not be known until assets are sold, claims reviewed and debt documentation analysed, MHA noted. The value of owned equipment located within Belmar’s leased premises at Abbotswell Road will be determined by a valuer and an auction is likely to be held.

Reid, based at MHA’s offices in Carden Place, Aberdeen, said efforts were being made to salvage the operations.

“Prior to liquidation, the board tried to sell the business, in whole or in part, but were unsuccessful,” he said. “They sought to review operating processes and pricing structures, however, without a base level of work, the factory was not viable.

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“The decision to close was taken as the final option. I will ensure that all employees are fully advised about the process for claiming their employment entitlements, including unpaid pay, pension deductions, accrued holiday pay, notice pay and redundancy.

“This is the second local engineering company that has appointed me liquidator in the last month and perhaps reflects the challenges facing this type of business at the moment,” he added.

Reid was also appointed liquidator of JIQ Manufacturing Limited, which operated from premises in Crathes, Banchory, on April 4. All four employees were made redundant.

MHA is ranked the 13th largest accountancy group in the UK and Ireland, has some 1,960 staff, 150 partners and comprises 20 offices, including in Edinburgh and Aberdeen.