Redundancies as Whitworth companies go into administration

Coates Engineering Group Limited, Coates Engineering (International) Limited, and BCH Limited have gone into administration - BDO LLP were appointed administrators on 14 September.

The Whitworth-based companies employed a combined 82 members of staff, 59 of who were made redundant upon the appointment of the administrators.

Staff who were made redundant received statutory redundancy pay, but the firm was unable to pay employees in September.

A BDO spokesperson said: “If the business is sold, any outstanding payments will form part of future negotiations with potential buyers.”

The companies specialised in process engineering for the food and confectionery industries, and the design, manufacture and engineering of machinery for nuclear, aerospace, environmental, pharmaceutical and food markets.

Trade will continue and remaining staff members have been retained to assist with the management of existing contracts. If the business is sold, the current employees will be transferred to the new owner.

Kerry Bailey, BDO business restructuring partner, said: “Unfortunately, challenging trading conditions have significantly affected the companies’ revenues and their ability to service debt obligations.

“Our priority is to maximise recoveries for creditors and to mitigate losses for customers. We are hopeful of securing a sale and the companies will continue to trade whilst this is explored.

There is no final deadline to find a buyer.

BCH Ltd was established in 1835 in Rochdale before moving to its currently location at Mill Fold in Whitworth. The company was acquired by Coates Engineering Group Ltd in 1993.

Parties interested in purchasing any of the Companies’ business or assets should contact BDO LLP on 0161 833 8269.