Fri, 03 Jan 2014 | ADMINISTRATION
McKechnie Brass, thought to be the last remaining brass bar maker in the UK, has entered administration, with the administrator now seeking a buyer.
The Aldridge-based business failed and called in an administrator at Duff & Phelps on 30 December. Sixty out of the 75 staff have been made redundant, and the administrators are now in talks with interested parties with a view to selling the business on.
Dating back to 1871, McKechnie has been based in the West Midlands since 1894, and produces alloy metals for the automotive, electronics, energy and construction sectors.
The business failed after a period of hefty financial losses due to the volatile prices of scrap brass squeezing its margins. It is thought to have lost £1.2 million over 12 months.
A spokesman for the business said the directors had attempted to keep the business standing, but that challenging market conditions scuppered their chances of survival.
He told the Birmingham Mail: “The appointment of administrators follows a sustained period of heavy financial losses, which resulted from a serious deterioration in trading conditions throughout the last year, particularly relating to the price of scrap brass metal.”
This is McKechnie’s second spell in administration. It was bought out of administration in the autumn of 2011 with asset-based lender Centric Commercial Finance providing a £6.5 million rescue package.
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