Aberdeenshire firm enters administration after 117 years of trading
- Published
More than half the workforce at an Aberdeenshire agricultural machinery business have lost their jobs after the company entered administration.
Balgownie Limited and Balgownie Rentals Limited had traded for 117 years.
Administrators Johnston Carmichael said "cashflow difficulties" were to blame for the closure of the Inverurie firm.
Twenty four employees have lost their jobs with immediate effect, with 17 workers retained to help try and sell the company's assets.
Mike Singer, the company's managing director, said: “As a result of cash flow issues, the board of directors is deeply saddened to announce that we have had to make the difficult decision to appoint administrators to the company with immediate effect.”
Richard Bathgate, one of the administrators, described Balgownie as "a well-respected company".
He said: "It has a trading history as far back as 1907 and is known for its quality and outstanding customer service.
“Unfortunately following the identification of cashflow difficulties, the board of directors has had to place both Balgownie Limited and Balgownie Rentals Limited into administration. "
The administrators said they were "urgently" assessing stock at the firm's Inverurie and Turriff depots to decide whether the business may be able to continue limited trading.