Administrators take over at electronics giant
Troubled electronics giant Viasystems Tyneside Limited has gone into administrative receivership following the failure of a last-minute rescue package.
The company, which operated from factories in South Shields and Longbenton, fell into difficulties after a slump in the electronics sector caused its turnover to drop by 80%.
Earlier this month, Viasystems attempted to cut its losses by reducing its workforce in South Shields and closing the factory at Longbenton.
It expanded its operations in 1996 with the acquisition of the Longbenton site. The company currently employs 1600 staff.
Peter Terry, Julian Whale, and Mick McLoughlin of KPMG Corporate Recovery appointed administrative receivers on last Thursday.
The receivers are hoping to continue trading Viasystems from South Shields while they find a buyer for some or all of the business.
Terry said: ‘We are reviewing operations to establish whether it is possible to continue trading whilst we advertise the business for sale as a going concern.’
‘Job losses are inevitable in view of the restructuring plans that had already been announced by the company.’
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