A training centre designed to tackle a shortage of skilled boiler engineers has shut following its parent company's collapse.
The National Gas Centre for Excellence in Featherstone, south of Leeds, is expected to be liquidated say administrators dealing with North East-based Boiler Plan's affairs. It launched last year following investment from the Northern Powerhouse Investment Fund and is reported to have cost £200,000 to set up.
At the time of its launch, directors said they wanted to provide quality training programmes in contrast to some fast track alternatives on the market, and touted the Yorkshire facility as a location for future training in new heating technologies that may eventually replace conventional gas boilers.
Administrators of Boiler Plan confirmed the National Gas Centre for Excellence - which trained Boiler Plan's own engineers and others - closed its doors in mid-July. The subsidiary owed its parent company more than £273,000 but administrators said it is unlikely the amount will be recovered.
Meanwhile, customers of Boiler Plan who made direct debit payments just after the firm collapsed are likely to receive their money back. The business was placed into administration last month owing more than £3.1m and insolvency specialists at Interpath are now working to recover what they can. A report from Interpath also confirmed that Boiler Plan's service and repair programme customer list had been sold for £27,500.
Boiler Plan founder and director Ian Henderson previously told Business Live that a critical shortage of new boilers brought on by supply chain issues had seriously hampered the firm's ability to fulfil orders and drove losses - bringing about the collapse. Writing in a report on their progress, administrators said: "In early 2022, the company's post Covid turnaround/ recovery plan was severely impacted by supply chain disruption and delays bringing on a major new sales contract.
"The directors identified a material funding requirement and engaged Interpath to explore the company's sale options and seek investment. Ultimately, a sale could not be achieved, and James Lumb and Howard Smith were appointed joint administrators of the company by the directors on June, 30 2022.
"The company ceased to trade on appointment and 58 of the company's 62 employees were made redundant immediately. Four employees were retained to assist in ensuring the company's books and records were up to date, specifically in relation to debtors and HR, all employees have subsequently been made redundant."
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