The Red7Marine group of companies has gone bust, with 47 jobs axed, professional services firm EY said today.
Red7Marine Group and its subsidiaries, Red7Marine and Red7Marine Offshore, provide offshore oil and gas, marine renewables, maritime inland subsea engineering and marine engineering services.
EY said Tom Jack, Sam Woodward and John Sumpton were appointed as joint administrators yesterday.
The job losses include 41 in Great Yarmouth, five in Aberdeenshire and one in Exeter.
Red7Marine’s inland and coastal (I&C) division, with offices in Wrabness in Essex and also Ipswich, has already been sold to I&C Limited, which EY said was a new company backed by a private investor. The sale saved 54 jobs, it added.
But Red7Marine’s offshore business including its small operation at Westhill, has ceased trading.
EY said nine employees were retained in the offshore division in Great Yarmouth to help the administrators wind down the business and achieve the best value they can from its assets.
Mr Jack added: “Cash flows came under significant strain due to falling demand for the Group’s services as a result of the collapse of the oil price, ongoing investment in the group’s fleet and a number of unexpected charges.
“Despite attempts to recapitalise the group, the directors were unable to do so and have been seeking alternative investment to support a turnaround of the business.
“This was not possible to achieve on a solvent basis and the group has, therefore, been placed into administration by the directors.
“It is with regret that the offshore business could not be sold and has ceased trading.
“We will support all employees affected by redundancy at this difficult time, including helping them to make claims for amounts owing to them from the Redundancy Payments Service.”