A 53-year-old West Midlands engineering firm has ceased trading, resulting in 66 job losses, just days after announcing the death of its chief executive. Mechatherm, based in Cradley Heath, entered administration on July 24, with joint administrators appointed from PwC.
Company Collapses Despite Efforts to Stay Afloat
In a statement on LinkedIn, the company said: "After over 50 years of operations, it is with sadness that we have to announce that Mechatherm will cease trading today, our doors will close for one last time. Despite many efforts to keep the company buoyant, a suitable solution has not been found and Mechatherm now finds itself undertaking a process of administration." The firm employed 70 people prior to the closure, with 66 made redundant immediately.
Specialist Engineering Business
Mechatherm specialised in the design, manufacture, and installation of industrial furnaces and aluminium casthouse equipment. The company had been involved in numerous prestigious projects worldwide over its five decades of operation. According to PwC, the directors had been seeking a buyer following a period of significant financial strain caused by contract losses, increasing creditor pressure, and constrained liquidity. However, no viable offers were received.
Administrators Appointed
Helen Wheeler-Jones, Timothy Andrew Higgins, and Edward Williams of PwC were appointed joint administrators on Friday, July 24. Ms Wheeler-Jones said: "We know how difficult and unsettling this news will be for those affected and are providing them with appropriate support. We are working closely with the Redundancy Payments Service to ensure employees can access their statutory entitlements as soon as possible."
CEO Death Announced Days Earlier
The administration came shortly after Mechatherm announced the death of its chief executive, Mark Allen. In a separate LinkedIn post, the business paid tribute: "Mark dedicated so much of his career to Mechatherm International, leading with passion, integrity, and an unwavering commitment to both our customers and the Mechatherm staff. His knowledge, determination, and sense of humour made a lasting impact on everyone who had the privilege of working with him." The post continued: "Mark was more than a leader – he was a mentor, colleague, and friend to many. He will be greatly missed, but his legacy will continue to inspire us. His saying 'ask for forgiveness not permission' meant we always knew he had our backs no matter what. Our thoughts are with Mark's family and loved ones at this incredibly difficult time. Rest in peace, Mark, we all love and miss you."
Impact on Employees and Local Economy
The loss of 66 jobs is a significant blow to the local community in Cradley Heath and the wider West Midlands engineering sector. Employees are now reliant on statutory redundancy payments, with the Redundancy Payments Service assisting them. The administrators are focused on ensuring employees receive their entitlements promptly.
