Thu, 01 Aug 2013 | ADMINISTRATION
Rolling stock provider Railcare has entered administration with BDO now seeking a buyer.
BDO was appointed as the administrator yesterday at noon and is in contact with customers to find out if there is enough demand to keep the company trading while a buyer is sought.
With sites in Glasgow and Milton Keynes, Railcare has about 500 skilled engineering staff, who are waiting to hear whether their jobs are secure.
Bryan Jackson, BDO restructuring partner, said: “Unfortunately the economic climate and difficult trading conditions significantly affected the business, together with reduced demand.
“However, we are hopeful of securing a sale and depending on customer requirements, the company may continue to trade whilst this is explored.”
Rail union RMT was made aware that Railcare had encountered difficulties after it failed to pay staff their wages. The union asked the government to step in and help Railcare. A request for a £1 million short-term crisis loan was turned down, however.
Business Secretary Vince Cable spoke about the proceedings: “This is an important company in the supply chain and it is vital that key engineering skills and jobs are not lost.
“My department has been working with the company to try and find a solution. I hope a resolution can be reached soon.”
Railcare operates an incident team to repair any damage to rolling stock for train fleets in the UK, utilising fabrication and welding, carpentry and machining as necessary. Set up in February 2007, it runs sites in Springburn and Wolverton.
Contact the administrators here
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