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20 job losses as firm closes
7:00pm Wednesday 16th January 2013 in News
NEARLY 20 workers have been made redundant following the collapse of Ashill-based company JRC Mechanical Services.
It was announced on Monday that Graham Bushby and Matthew Wild, of Baker TIlly Restructuring and Recovery LLP, have been appointed joint administrators of the plumbing, heating and air conditioning installation firm.
JRC, which was based at Crow Lane in Ashill, had traded for 20 years and supplied services in private businesses and public sector buildings such as schools and police stations.
But Mr Bushby, restructuring and recovery partner at Baker Tilly, said the poor economic climate had taken its toll.
“Despite being a reputable business, JRC faced difficult trading conditions typical of the construction sector in the current economic climate, notably a declining order book and reducing margins,” he said. “These sector issues were compounded at JRC by the insolvency in 2010 of building services company Rok, as well as customers not paying to terms.
“The company recently exhausted its cash resources and in the absence of additional funds, has been unable to finance its new contracts. Consequently, the directors had no option but to appoint administrators to protect the assets for the benefit of creditors.”
Mr Bushby said they had had ‘no option’ but to make all 19 staff at JRC redundant.
But he added: “We are continuing to assist them with expediting their claims through the Redundancy Payments Service for redundancy pay and any monies owed to them.”