Hundreds of Railcare jobs at risk in Glasgow and Milton Keynes
About 500 skilled engineering jobs in Glasgow and Milton Keynes have been put in jeopardy after rail fleet repair firm Railcare went into administration.
Rail union RMT said earlier this week it was made aware that Railcare was in trouble after it failed to pay staff wages.
This followed the collapse of a planned takeover by a German company.
Accountancy firm BDO was appointed as the administrator at noon and said it was liaising with customers.
Bryan Jackson, BDO business restructuring partner, said: "Unfortunately the economic climate and difficult trading conditions significantly affected the business, together with reduced demand.
"However, we are hopeful of securing a sale and, depending on customer requirements, the company may continue to trade whilst this is explored."
The RMT has called on the government to provide assistance to Railcare.
General secretary Bob Crow said: "The government cannot sit on their hands and watch this situation play out for the want of what we believe is not much more than a million pounds of cash flow finance."
Business Secretary Vince Cable said: "This is an important company in the supply chain and it is vital that key engineering skills and jobs are not lost.
"My department has been working with the company to try and find a solution. I hope a resolution can be reached soon."
The company has sites in Wolverton and Springburn.