GCG Shotblasting Services has filed for administration.
Operating from its Peterhead facilities for more than 30 years, together with on-site activities at client sites, the company provided protective coatings to on and offshore assets, along with other protection and maintenance.
The company had expanded its trading activities in recent years, alongside investing in research and development activities to broaden its service offering.
Unfortunately, following a reduction in on-site work due to lockdown restrictions and the cancellation of contracts stemming during the pandemic, revenues were significantly impacted and, against a fixed cost base, losses arose which resulted in cash flow difficulties.
The administrator's report explained that despite a recent uptick in activity and efforts made by the directors to turn the position around, cash resources were not available to service ongoing commitments and increased debt levels.
Having considered all available options and having sought to raise additional funding or investment, which ultimately could not be secured, the directors determined that administration was necessary.
The business could not continue to trade and therefore there was no option other than for the majority of its 13 employees to be made redundant immediately upon appointment of the administrators. Some remaining employees have been retained for a short period to help with administrative matters.
Blair Nimmo, joint administrator and chief executive of Interpath Advisory, said: “Despite the best efforts of the directors and improving activity across the market, this is unfortunately another company that has been adversely impacted as a result of Covid-19 delays and debt build up.”
Geoff Jacobs, managing director at Interpath and joint administrator, added: “This is a disappointing outcome for a long-established family-run business; however, we will now take steps to support the workforce and look to secure a sale of the assets comprising primarily, its property, plant and machinery, well-known business name, order book, work in progress and customer list.”
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