Glasgow-headquartered nuclear decommissioning specialist JFN Limited has gone into administration putting 300 jobs at risk.
Administrators at FTI Consulting described it as a "tremendously sad day for everyone who has been involved in the business" which was owned by Myneration Limited, a wholly-owned investment vehicle of Rcapital Partners. Originally set up in the 1990s, the company has provided technical services to the UK nuclear decommissioning sector for more than 30 years.
In a statement the administrators said JFN had incurred losses in recent years associated with "a number of uneconomical long-term contracts" which resulted in the business requiring a "significant" funding injection.
Despite efforts of directors and key stakeholders to secure the future of the business during the past few months, the company had insufficient cash resources to continue trading beyond the short-term. With no reasonable prospect of selling the business, directors said they had no choice but to appoint administrators.
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FTI said it will focus on working with employees, customers, subcontractors and suppliers to effect a wind-down of the majority of operations over the next few weeks, while continuing to explore interest in parts of the business. FTI is "hopeful" of being able to conclude a transaction in the coming days for the instrumentation division, which employs about 20 people.
FTI added that it is working closely with employees affected by the closure of the business to ensure they receive the support they need with their claims for redundancy and other compensatory payments.
"Our priority is to ensure that all employees made redundant are assisted in processing their claims with immediate effect," it said in a statement. "We will be circulating correspondence to all staff as soon as possible which will outline the support available to complete redundancy payment forms."
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