85 jobs lost as high tech firm goes into administration [Western Morning News (England)]
(Western Morning News (England) Via Acquire Media NewsEdge) More than 80 jobs have been lost after a South Devon high tech firm went into administration. Syntech SW Limited has ceased trading afterthe sale of the business fell through at the last minute.
FRP Advisory have now been appointed administrators to handle the collapse of the business which once enjoyed a Pounds 10million turnover. Andrew Sheridan from FRP Advisory said the electronics manufacturing firm, had found trading extremely difficult over the past two months and despite offers of a takeover had not been able to secure a buyer.
Mr Sheridan said all 85 staff had been made redundant with immediate effect.
He said: "We have not ruled out the possibility of achieving a sale of the business and assets in some form."
However he confirmed that Syntech had now ceased trading and also confirmed the heavy job losses.
The partner at the administration firm added: "It is devastating that the negotiations for the purchase of the business and assets collapsed at the 99th hour, despite its strong order book and excellent pipeline.
"With a sale having fallen through, it left no alternative but to cease trading with immediate effect resulting in the regrettable redundancies."
FRP Advisory said Syntech had not weathered the recession well and had been struggling with unsustainable cashflow pressures and its directors had been actively seeking investment and buyers for the business for the past two months. He said interest was expressed by several parties resulting in a contract being issued for a sale of the business and assets but unfortunately negotiations collapsed at the last minute, leaving the directors with no alternative but to place the company into administration. Joint administrators, Andrew Sheridan and Gareth Morris said they had to cease trading the business with immediate effect, resulting in the entire workforce of 85 staff being made redundant.
Syntech is a privately owned company, founded and run by directors Mike Badcott and Malcolm Keat and had been trading since 1999 following the closure of Nortel Networks in Paignton, formerly known as STC Defence Systems, and the business currently occupies leasehold premises of 130,000 sq ft in Paignton.
During its history Syntech had enjoyed many years of profitable trading.
Syntech's core customers include Zinwave, Honeywell Global Tracking, Gooch & Housego, AceAxis and Plasma Antennas. Its components are used in products ranging from Inmarsat satellite tracking systems, to DAS repeaters for hospitals and large buildings, 4G LTE latest generation mobile phone base stations, medical laser drivers and many other telecoms systems.
Mr Sheridan added: "The joint administrators are now ensuring that former employees are provided with the necessary support to make timely claims from the Redundancy Payments Service."
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