Two Scottish engineering firms have entered administration with the loss of 93 jobs after worsening financial pressures forced both businesses to cease trading.
AIM Engineering & Fabrication Group and Hescott Engineering Company, sister firms based in Falkirk and Larbert, appointed administrators on Friday after directors concluded their financial positions had become unsustainable.
Interpath Advisory partners Alistair McAlinden and James Dewar were appointed joint administrators for both businesses.
The companies have now stopped trading completely, with all employees made redundant following a turbulent period at the firms, including disruption at Hescott after workers reportedly went unpaid.
Up to 40 employees gathered outside the company’s premises after staff were told to remain at home, effectively halting operations at the site.
Both companies specialised in steel and metalwork design, engineering and fabrication services, carrying out construction and industrial work alongside on-site installation projects.
Their client base covered sectors including construction, petrochemical, oil and gas, and industrial processing.
AIM Group was founded in 1984 while Hescott was established in 1988 and acquired Hescott in November 2024 as part of wider expansion plans following the takeover.
Scottish engineering firms AIM and Hescott collapse into administration with 93 redundancies
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GETTY
Before the collapse, Hescott had been involved in supplying structural steel for AIC Heating UK’s £6million facility in partnership with Redpath Construction.
The company generated around £14million in turnover last year and had recently secured a role with Scottish Water as a low-emission steel supply chain partner alongside ArcelorMittal.
Administrators said the businesses had struggled with difficult market conditions which were worsened by the loss of a major customer.
They stated: “In common with a number of other organisations operating across the building and construction supply chain, the companies had experienced challenging trading conditions in recent times, which were exacerbated by the loss of a major customer.”
AIM Engineering & Fabrication Group in Falkirk
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AIM Group
Rising costs and tightening margins across the construction and engineering sectors placed increasing financial strain on both firms.
Directors attempted to stabilise the businesses before eventually concluding that administration represented the only remaining option.
Mr McAlinden, joint administrator and head of Interpath in Scotland, said: “These administrations come against a backdrop of sustained turbulence across the construction and engineering supply chain, where rising costs, tightening margins and the loss of key contracts have created acute financial strain.
“We recognise this is a particularly difficult time for the companies’ workforce, and our thoughts are with all those who have been made redundant.
“Supporting them through the claims process and helping them access the assistance available will be our immediate priority.”
The administrators confirmed they would assist former employees in making claims for outstanding payments through the Redundancy Payments Service.
Parties interested in purchasing the businesses or their remaining assets have also been encouraged to contact the administrators.