Military vehicle manufacturer loses cashflow battle
21 Jan 2020
Blair Nimmo, partner, and James Lumb, director, from KPMG’s restructuring practice have been appointed joint administrators of Penman MW Ltd
21 Jan 2020
The engineering company has collapsed after more than 160 years of trading, with the loss of 60 jobs.
The company, which traded as Penman Engineering, employed 61 people on a 15-acre site in Dumfries, and has been in operation since 1859, specialising in the design, construction and software development of armoured military and security vehicles.
In 2017 the company was rescued from a previous administration by Martin Williams (Hull), but cash pressures have made the business unsustainable, KPMG reported.
Following the firm’s appointment, 44 employees have been made redundant, with the remaining 17 members of staff being retained to assist the administration process.
Blair Nimmo, head of restructuring at KPMG UK and joint administrator, said: ‘Penman Engineering has a long heritage of producing highly specialised armoured vehicles from its base in the south of Scotland.
'The company’s experienced, knowledgeable team has worked tirelessly to find long-term sustainable solutions, but – regrettably – cashflow challenges have left the owners with no other choice but administration.
‘Our focus as administrators will be on assessing what options are available for the business and ensuring clients and impacted staff members are fully supported throughout this difficult process.’