36 jobs go as Wirral chemical firm appoints administrators

Jan 27 2011 By Alex Turner

THIRTY-SIX people have been made redundant after a Wirral chemicals firm appointed administrators.

A further 76 jobs are under threat as the administrators continue to trade Phoenix Chemicals while they fulfil customer orders and look for a buyer.

The Bromborough company, founded in 1991, is a pharmaceutical intermediates and fine chemicals manufacturer.

It said cashflow difficulties resulted from "a period of low sales and operational delays in production".

Chris Ratten and Jeremy Woodside, from corporate recovery firm RSM Tenon, were appointed as joint administrators on Tuesday.

This resulted in 29 staff at the Bromborough site and seven staff at the Annan site being made redundant. A further 49 staff in Wirral and 27 in Scotland remain with Phoenix.

Mr Ratten said: "We are looking to keep trading the company over the next few weeks whilst we market the business and assets for sale."

Phoenix made a pre-tax loss of £2.9m on £8m sales in the year to April, 2009, and was due to publish its 2010 accounts by the end of this month. Its last accounts showed a shareholders’ deficit of £630k and the firm’s auditors said there was a "material uncertainty" about its ability to continue.

Notwithstanding that, Phoenix took over a site in Annan, Dumfries and Galloway, in September, 2009.