The majority of employees at an Aberdeenshire shotblasting firm have lost their jobs after the company collapsed into administration.
GCG Shotblasting has ceased trading with immediate effect and appointed administrators, after operating for nearly 40 years.
The majority of its 13 employees were made redundant immediately, with the remainder kept on temporarily to help with “various administrative matters”.
The family business, founded in 1985, provided companies in the oil and gas industry with “critical” coatings to protect and maintain on-and-off-shore equipment.
However, despite expanding its trading activities in recent years, the firm cited a reduction in onsite work due to Covid restrictions and the cancellation of contracts stemming from the pandemic as reasons for its financial difficulty.
It comes less than a week after hundreds were made redundant as the Aberdeen-based Stoneywood paper mill entered administration.
Blair Nimmo and Geoff Jacobs of Interpath Advisory were appointed joint administrators for GCG Shotblasting on Monday, September 26.
Despite a recent uptick in activity levels and efforts made by the directors to turn the business around, the flow of cash remained challenging amid increasing levels of debt.
“Having considered all available options and having sought to raise additional funding or investment, which ultimately could not be secured, the directors determined that entering administration was necessary,” the administrators said.
Mr Nimmo, chief executive of Interpath Advisory, said: “Despite the best efforts of the directors and improving activity across the market, this is unfortunately another company that has been adversely impacted as a result of Covid-19 delays and debt build up.”
Mr Jacobs, managing director at Interpath Advisory, said: “This is a disappointing outcome for a long-established family-run business.
“However, we will now take steps to support the workforce and look to secure a sale of the assets comprising primarily, its property, plant and machinery, well-known business name, order book, work in progress and customer list. Interested parties should make contact in early course.”