A group of Scottish ship building companies operating on the River Clyde have entered administration, resulting in 70 redundancies.
Ferguson Shipbuilders Limited, Newark Joiners Limited and Ferguson-Ailsa Limited, trading from the Newark Works in Port Glasgow, entered administration after failing to secure new vessel contracts from its customer base.
Attempts by the company to bolster its financial strength and secure investment into the business proved unsuccessful.
Blair Nimmo and Tony Friar of KPMG were appointed as joint administrators of the companies on 14 August 2014.
The administrators have stated they are “assessing all available options” with relation to the companies’ works in progress, as well as a sale of the businesses and assets.
Nimmo, head of restructuring for KPMG in Scotland said: “Ferguson Shipbuilders is a leading name in the industry with a rich heritage dating back more than 110 years and is the last commercial shipbuilder operating on the River Clyde.
“The group’s infrastructure and unique offering has earned it global success in recent years, principally from the building of two “world first” diesel hybrid ferries. However, a lack of significant orders and mounting cash flow pressure has led to the group’s inability to continue trading.
“We would like to thank staff for their co-operation during this difficult period. We will be working with employees and the relevant government agencies to ensure that the full range of support is available to all those affected.”