South Scotland

Administrators confirm Penman job cuts

Penman Engineering

Administrators have confirmed just 15 staff remain at armoured vehicle firm Penman Engineering following the latest round of job cuts.

Sixty staff were made redundant on Thursday due to cashflow problems.

The company from near Dumfries had about 140 employees when it went into administration last month.

Mark Ranson of administrators Armstrong Watson said a delay in the receipt of funds from customers meant the staff could not be kept on.

"The administrators have been seeking recovery of those funds from customers, and will continue to do so," he said.

"All staff affected will be kept informed and payments will be made as soon as funds become available.

"Fifteen employees have been retained by the administrators to help complete various tasks relating to the collection of remaining debts and the ongoing sale of the business."

Meanwhile, Dumfries and Galloway Council leader Ronnie Nicholson has written to First Minister Nicola Sturgeon seeking her support for the struggling business.

Mr Nicholson said the loss of more than 100 skilled jobs - including apprentices - were "individual tragedies" and also a "further blow" to the region's economy.

'Difficult time'

He asked Ms Sturgeon to ensure the Scottish government intervened as it had to broker a deal at the Dalzell steel works.

He said that would be a "key step forward" in meeting the challenges facing the local economy.

Speaking for the Scottish government, Business Minister Paul Wheelhouse said he was "very disappointed" to learn of further redundancies.

"This continues to be a very difficult time for all of those affected and their families," he said.

"Partnership Action for Continuing Employment (PACE), the Scottish government's initiative for responding to redundancy situations, has provided support to staff who have already been affected and stands ready to offer further support to the staff made redundant today.

"Scottish Enterprise (SE) is also working closely with the administrators and doing everything possible to help find a buyer for the business."

He said SE had promoted the business to several companies who were now in discussion with administrators.

"That work will continue, as we explore every possible avenue to support the Dumfries site and its workforce," he said.

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites