Red7Marine Goes into Administration
A total of 47 people lost their jobs after energy service group Red7Marine went into administration.
“In the period leading up to the administration, the group’s 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,“ said joint administrator Tom Jack.
Its inland marine engineering services division was sold to a private investor saving 54 jobs, but Red7Marine Offshore based in Yarmouth was not sold.
Around 280 people has been affected by the administration including 150 subcontracted divers.
According to Ernst Young, nine employees were left to help the administrators.
Jack added: “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.”