Jobs safe at North Shields family company

Jan 29 2010 by Iain Laing, The Journal

THE jobs of 20 staff at a fire protection engineering business have been saved after the family firm went into administration with debts of around £300,000.

Smith Fire Protection of North Shields fell into administration 11 days ago after its market was hit by the recession. The business had been trading since 1989 working in the commercial sector with industrial developers throughout the UK, designing and installing sprinkler and other fire protection systems.

But adminstrator Northpoint Associates said that the business and the jobs of 20 employees have been saved and creditors should receive some money back.

Administrator Greg Whitehead said: “The company had always been profitable until the impact of the recession was felt.

“The company has also suffered a significant bad debt in respect of another business venture. Despite these setbacks the management felt that the core business was viable, based on a reputation built up over many years, although it is likely to be some time until the success enjoyed in the “boom” years returns.

“In a family business such as this, with strong client relationships, the existing team was best placed to take the business on so the restructuring implemented is in the best interests of all parties. Projects will continue and the workforce has been retained.”

Michele Smith, part of the management team at Smith, said: “After many successful years it has been a difficult period, but we are confident that the business can prosper.”