40 jobs lost as supplier to Nissan shuts down
Sep 25 2007 by Chris Knox, The Journal
A SUPPLIER of car parts to Nissan has closed down, with the loss of more than 40 jobs despite attempts by administrators to sell the 30-year-old business.
Darlington-based factory Malcolm Engineering Company (MEC) has finally closed its doors after administrators, who were brought in last month to save the business, were unable to secure a buyer.
Leeds-based administrators Geoffrey Martin and Co had been hopeful of a sale but they said that the MEC had lost a number of clients leading up to the closure last Friday. These included ThyssenKrupp Automotive Chassis in Newton Aycliffe and Washington-based steel maker Unipress.
Nine of the 54 staff will stay at the factory to complete the administration of existing contracts and to prepare the sale of its machinery and 2,560 sq m freehold property.
The move angered union GMB, which said it was given short notice of the job losses. GMB regional organiser Jimmy Skivington said: “The company hasn’t even had the courtesy to inform us of the closure. MEC told our representative at very short notice that it was going to happen and just carried it out. Firms are obliged to consult the trade union if there are going to be more than 20 redundancies, and MEC has not done that.”
John Twizell, at Geoffrey Martin and Co, said: “Malcolm Engineering Company was placed into administration as of August 2, 2007, and every effort has been made to find a buyer for the business as a going concern.
“However, during this tough period the two main clients of the company felt that while it was not their preferred option, it was ultimately in their best interests to seek alternative suppliers and the resulting loss of business has made the sale unachievable.”
The factory was founded in 1968 by Vernon Malcolm senior and was owned by his sons Chris and Douglas Malcolm as well as granddaughter Deborah Claire.
MEC turned over £2.2m in the six months to June 30 this year but had not filed accounts for 15 months to that point. Geoffrey Martin and Co were forecasting a full-year turnover of £4.5m if the sale of the business was achieved. However, the movement in the profit and loss reserve on the balance sheet suggests the company made a loss during the last period.
