Partner Article

McNulty Group Holdings goes into administration

McNulty Group Holdings and its subsidiaries McNulty Offshore Construction and Consafe Engineering Services Ltd have gone into administration.

The Tyneside based oil and gas contractor, which also has a base in Aberdeen, specialises in construction engineering, pipe and structural fabrication and project management services.

The poor global economic environment has particularly impacted on the business, detrimentally affecting the supply chain for significant capital and expenditure projects.

Mark Firmin and Howard Smith from KPMG’s Northern restructuring practice have now been appointed as joint administrators for the McNulty Group.

Mark Firmin, joint administrator and KPMG’s Northern head of restructuring, said: “While this business has struggled with tightening global trading conditions for some time, it has a long history of delivering successful projects.

“This, teamed with its prime freehold Tyneside location, give us reasons to consider it an attractive acquisition opportunity. Therefore we are marketing the business and are hopeful of securing a sale.”

The company previously employed 166 people, 132 in the North East and 34 in Scotland. However, as the administrators cannot trade the business in administration, 100 workers in South Shields have been made redundant.

32 employees have been kept on to assist the administrators in the North East, while no redundancies have been made in Aberdeen.

This was posted in Bdaily's Members' News section by Ruth Mitchell .