Fri, 10 Jan 2014 | ADMINISTRATION
Car component maker DMI (UK) Ltd has been placed into administration with the immediate loss of 27 jobs.
Based in North Shields, North Tyneside, the business was involved in treating and reconditioning components for luxury car marques such as Rolls Royce. It had suffered a decline in work and mounting financial losses over the past two years.
The company spokesman said the management are fairly optimistic that the administrators can find a buyer to take over all or part of the business, with a chance for re-employment for some of the redundant workers.
The staff had been kept informed of the declining work situation, the company spokesman said.
“We had big customers who were buying quite a lot from us but that then fell to around 20 per cent of what we had anticipated and budgeted for.
“We brought some work back in but that didn’t achieve anything like we were hoping and it actually exacerbated matters, and we stopped that a few months ago.
“With losses mounting we got to a point where we couldn’t survive any longer. Even with the deepest of pockets you cannot carry on with big losses forever,” he said.
The situation has angered the GMB union, which told bosses they were directing staff towards the Redundancy Payments Service, implying that the taxpayer should pick up the bill.
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