Ernst Young have been appointed joint administrators of Red 7 Marine this morning and staff have been informed.
Its inland marine engineering services division was sold to a private investor saving 54 jobs but Red7Marine Offshore based in Yarmouth was not sold.
280 people have been affected by the administration which included some 150 subcontracted divers. 9 employees are staying on to help the administrators
Administrator Mr Jack said: “In the period leading up to the administration, the group’s cash flows came under significant strain due to falling demand for its 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.”
the fall in the oil price has put pressure on the firm as prices paid to contractors for various types of subsea work has seen reductions.
Below is an infographic illustrating creditors’ rights (including employees and suppliers).