NORTH-EAST workers have been made redundant at an electrical firm, The Northern Echo can reveal.

Apex Electrical Solutions has gone into administration, with 15 staff losing their jobs.

Administrators KMPG say the Gateshead-based firm had debts of nearly £790,000, and had struggled after its biggest customer fell into insolvency.

They added the customer, which has not been revealed, left Apex with a £100,000 debt and a 20 per cent loss in turnover.

According to a KPMG report, seen by The Northern Echo, the company owed cash to a number of North-East firms, including £76,822 to Hacel Lighting, in Wallsend, North Tyneside, a £72,553 loan from the NEL Fund Managers’ North-East Growth Fund, and £16,133 to Middlesbrough’s Cleveland Cable.

The electrical wholesaler and lighting distributor, which recorded £190,000 losses in its last yearly results, was also £11,000 in arrears on staff wages and owed more than £580,000 to RBS Invoice Finance.

Howard Smith, joint administrator, said the company’s directors had tried unsuccessfully to attract financial backing, and now had assets worth just £44,000.

He said: “The company was experiencing severe cash flow pressures as a result of the insolvency of its largest customer.

“The directors were concerned they could no longer pay debts and the company ceased receiving new deliveries and started being wound down.

“Due to the large amount of slow moving and obsolete stock it was not possible to continue trading during the administration.

“Due to the loss of customer goodwill following the appointment of joint administrators, we concluded it would not be possible to find a buyer for the business as a going concern.”

Mr Smith added he did not expect RBS to be repaid in full.

According to the report, Apex also owed nearly £10,000 to Wearside electrical component firm Ronbar Factors, more than £1,000 to transport firm Katem, based in Spennymoor, County Durham, and £18,850 to Portuguese lighting company Indelague.

It had a £819 debt with transformer maker Carroll and Meynell, in Eaglescliffe, near Stockton, and owed Northumbrian Water £443.