Partner Article

KPMG administrators appointed to Middlesbrough’s SBV Fabrication save 163 jobs

Howard Smith and Jonny Marston of KPMG’s Restructuring practice were appointed joint administrators over SBV Fabrication and Site Services Ltd on 22 December 2014.

The business, which supplies steel fabrication and associated services to the steel industry as well as energy sectors including nuclear and oil & gas, had operations in Middlesbrough, Hartlepool and Teesport Commerce Park.

A significant one off loss in relation to a major contract had led to unsustainable cashflow pressure, resulting in the presentation of a winding up petition against the company, following which the business entered administration at the request of the directors.

Immediately upon their appointment the administrators sold the company’s interest in a number of specified contracts and related assets to a newly formed entity, owned by the previous management, called SBV Engineering, in a deal which saves 163 jobs.

The new company will operate solely from the Teesport Commerce Park site and regrettably the 52 employees who did not work in the parts of business that were acquired have been made redundant.

Associate Partner and Joint Administrator, Howard Smith, said: “Whilst it is always pleasing to conclude a going concern sale, preserving both a business and employment for the majority of staff, redundancies at any time are difficult and that is particularly the case as Christmas approaches.

“Our team were on site at appointment to support those made redundant and will continue to do so. The timing of this transaction was critical to our ability to save the majority of the business.”

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