Blair Nimmo and Tony Friar of KPMG have been appointed as joint administrators of Ferguson Shipbuilders Ltd, the last commercial shipbuilder operating on the River Clyde, with the immediate loss of 70 jobs at the group which also includes Newark Joiners and Ferguson-Ailsa
Originally formed in 1902, Ferguson Shipbuilders while best known for its shipbuilding capability, had expanded into engineering and joinery, delivering tailored services to support applications in materials handling, fluids distributions, system hydraulics, power distribution and management and civil engineering.
KPMG reported the group has experienced significant cashflow pressure in recent months and the lack of financial strength has hindered its ability to secure new vessel contracts from its core customer base. Recent attempts to secure investment into the business have proved unsuccessful.
Blair Nimmo, joint administrator and head of restructuring for KPMG in Scotland said: ‘The group’s infrastructure and unique offering has earned it global success in recent years, principally from the building of two “world first” diesel hybrid ferries.
'However, a lack of significant orders and mounting cashflow pressure has led to the group’s inability to continue trading.’
The joint administrators are currently assessing all available options to complete the group’s remaining work in progress and ascertain whether an early sale of its business, infrastructure, and assets can be secured.
