Interpath Advisory appointed administrators of G.C.G. Shotblasting Services
Blair Nimmo and Geoff Jacobs of Interpath Advisory have been appointed joint administrators of G.C.G. Shotblasting Services Limited.
Operating from its Peterhead facilities for over 30 years, together with on-site activities at client sites, the Company provided critical services through protective coatings being applied to on- and offshore assets, alongside other protection and maintenance offerings
The company had expanded its trading activities in recent years, alongside investing in research and development activities to successfully broaden its service offering. Unfortunately, following a reduction in on-site work due to lockdown restrictions and the cancellation of contracts stemming from COVID-19, the company’s revenues were significantly impacted and, against a fixed cost base, losses arose which resulted in cash flow difficulties.
Despite a recent uptick in activity levels and efforts made by the directors to turn the position round, cash resources were not available to service ongoing commitments and increased debt levels. Having considered all available options and having sought to raise additional funding or investment, which ultimately could not be secured, the directors determined that an Administration appointment was necessary.
The business could not continue to trade and therefore there was no option other than for the majority of the Company’s 13 employees to be made redundant immediately upon appointment of the administrators. The remaining employees have been retained for a short period to help with various administrative matters.
Blair Nimmo, joint administrator and chief executive of Interpath Advisory, said: “Despite the best efforts of the directors and improving activity across the market, this is unfortunately another company that has been adversely impacted as a result of COVID-19 delays and debt build up.”
Geoff Jacobs, managing director at Interpath Advisory and joint administrator, added: “This is a disappointing outcome for a long-established family-run business; however, we will now take steps to support the workforce and look to secure a sale of the assets comprising primarily, its property, plant and machinery, well-known business name, order book, work in progress and customer list. Interested parties should make contact in early course.”