25.11.2013

Administration for Tanfield Engineering

Tanfield, having transferred Snorkel to Xtreme and Don Ahern, has placed Tanfield Engineering into Administration, having failed to find a buyer.

The business, while not large, posted losses of £732,000 last year and negative net assets of around £367,000. The administrator plans to run the company on while it seeks a buyer.

A statement from Tanfield said: “As reported on 5 November the Company was investigating ways to dispose of the loss making engineering unit, Tanfield Engineering Services Limited. No immediate buyers were identified and in order to preserve the groups cash reserves to run the plc to advance the strategy of realising value from the company's two principal investments in Snorkel and Smith Electric Vehicles, the company has appointed Administrators for this business unit.”

“The administrators are of the view that the best outcome for creditors is served by trading the business for a period and seeking a buyer. The administrators are optimistic that they will be able to find a buyer and preserve as many jobs as possible. Henceforth this unit does not therefore form part of the group’s activities.”