Redcliffe Magtronics has gone into administration following “a dramatic reduction in orders” due to the drop in oil prices. Paul Wood and Gilbert Lemon of financial-services firm Smith & Williamson were appointed as joint administrators to the engineering support business on 29 April.
At present, the Bristol-based company is continuing to trade in order to supply key customers, and this is expected to last until October. Nine members of staff have been retained to run the business, but 16 have been made redundant.
The administrators are said to be in touch with customers who have expressed an interest in hiring some of the former employees.
A statement from Smith & Williamson said: “Redcliffe Magtronics was trading profitably and successfully for many years as a specialist high-performance engineering company.
“However, in the first quarter of 2015, the company suffered a dramatic reduction in orders. Its major customers attribute this in part to the reduction in the oil and gas price and the knock-on effect this has had in delaying contracts.
“This severe reduction in orders meant that Redcliffe Magtronics faced critical cash-flow pressures that resulted in the appointment of administrators.”