Administrators have confirmed that 77 jobs have been lost immediately following the collapse of Specialist Subsea Services (S3).
The Aberdeen firm will retain five members of staff as KPMG restructuring supremo Blair Nimmo seeks to find a buyer for the business.
The remotely operated underwater vehicles (ROVs) specialist was hit when its majority owner and biggest customer, Reef Subsea AS, was put into liquidation earlier this month as backers pulled support from the firm in the wake of falling oil prices.
S3 has been trading since 2007 and was acquired by Reef in 2009.
Mr Nimmo, Head of Restructuring for KPMG in Scotland and who was appointed as joint administrator on Wednesday, said: “The company is well known in the subsea services industry and has a significant infrastructure comprising several ROV systems together with significant subsea equipment, a customer base and intellectual property.
“We will do everything we can to seek a buyer who may be able to protect the business and which would maximise recoveries for creditors whilst also helping to maximise opportunities for the workforce.
“We would encourage any party who has an interest in acquiring the company’s business and assets to contact us as soon as possible.”
The Stavanger-based Reef Subsea kicked off the collapses just months after Norwegian venture capital firm Hitecvision took control of the business in a £17million deal.
The firm’s Stockton-on-Tees, and Aberdeen-based operation, Reef Subsea UK was unaffected, although subsidiary Technocean Subsea, which has facilities in Aberdeen, was also put into liquidation.
At the time, Reef chairman and former Subsea7 boss Mel Fitzgerald, said the management team had failed to “find sustainable solutions with key stakeholders” to save the firm.
The Norwegian company was set to make an operating loss of just £1.2million in 2014 on a turnover of £130million.
Mr Nimmo said S3 had secured a “frame agreement” with a major subsea engineering and construction company but that its “cash flow issues intensified” following the problems facing Reef.
“The appointment of administrators was therefore necessary,” he added.
Hitecvision holds stakes in a range of firms including North Sea explorers Oyster Petroleum and Spike Exploration. It is led by founders Ole Ertvaag and Ola Sætre and manages four funds with total capital of £1.8billion
Directors of Hitecvision did not respond to a request for comment.
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