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Over 100 jobs lost as Teesside engineering firm enters administration

Stockton-on-Tees-based Cordell Group Limited, and its subsidiary Cordell Southern Technical Services (CSTS) Limited, has entered administration resulting in the total loss of over 100 jobs.

The engineering design, fabrication and construction contractor made 50 redundancies on 3rd February prior to the commencement of the administration, and a further 57 redundancies were made upon it entering administration.

All 10 staff at CSTS, which provides electrical engineering services for building management systems, have also been made redundant.

Formed in 2000, Cordell Group has felt the pinch from the decline in the oil and gas sectors in recent years and lost significant contracts leading to financial difficulties.

Administrators Lee Lockwood and Bob Maxwell, of Begbies Traynor, were jointly appointed on February 23.

The administrators are currently continuing to trade with the group’s major customers to complete a number of existing projects while they consider the options for the business and the remaining 170 staff.

Joint administrator Lee Lockwood said: “Unfortunately, the group has suffered from the decline in the oil and gas sector over the past couple of years, and whilst seeking to diversify into other sectors, it suffered losses on two contracts from which its financial problems arose.

“Significant interest in the group has been expressed by potential buyers or investors, but no sale or investment has been concluded to date.”

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