More details have emerged about the first wave of redundancies announced at the Cleveland Bridge factory in Darlington.
Two weeks after the shock news that administrators were being called in, 53 staff have been told they have lost their jobs.
The official statement from the administrators at business consultancy FRP this afternoon said: "The Joint Administrators continue to hold discussions with interested parties having marketed the business for sale. However, for operational and financial reasons, 53 roles have been made redundant. The vast majority of roles affected are office-based.
"A small group of around 25 core staff remain at work to assist the Joint Administrators with their duties and in anticipation of restarting production as soon as possible.
"The remaining 128 roles remain furloughed as part of the Coronavirus Jobs Retention Scheme pending the intended restart of production. A small handful of staff have since left their positions voluntarily."
Martyn Pullin, Partner at FRP and Joint Administrator of Cleveland Bridge UK, said: “We remain focused on restarting production to support clients with live project work while pushing forward ongoing talks with interested parties.
“Regrettably, a number of roles have been made redundant as we restructure the business. Our team is on site to support impacted staff through this difficult period and assist in making claims through the Redundancy Payments Service.”
Reacting in a joint statement, Tees Valley Mayor Ben Houchen, Sedgefield MP Paul Howell and Darlington MP Peter Gibson said: “The news that 53 members of staff at Cleveland Bridge have been made redundant today is devastating news, and support for those workers affected at this difficult time is being provided through Darlington Borough Council.
“Since the company fell into administration last month our number one priority has been to save as many jobs as possible while a buyer for the company is found, and this remains the case.
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“With production due to restart soon so that existing orders can be fulfilled, we remain optimistic that a buyer can be found for this world-leading company with a global reputation built on the expertise and skills of its workforce.
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“We know the administrators are working to keep the key production staff in place with a view to complete orders in progress whilst negotiations with potential buyers continue.
“Any deal to save Cleveland Bridge must protect as many local jobs as possible, and we will continue to work with the trade unions, the administrators, government and potential buyers to safeguard local jobs.”
The redundancies could be an indication that the business is being slimmed down, either to attract a buyer, or to persuade one already showing serious interest.
Those potential new owners will already have back office capacity, so may not want to take on more, but will be keen to keep the highly-valued skills of key workers.
There are believed to be three or four possible bidders who the administrators have looked at and who are being talked to again, but there has been no confirmation of a shortlist.
A union spokeman said there was still progress beng made and said they were now 'more optimistic' about potential bidders and a return to some level of production.
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