THE parent firm of an East Lancashire engineering company was expected to call in the receivers today.
TransTec, which owns Earby Light Engineers in Pendle and which is part-owned by former Paymaster General Geoffrey Robinson, last week disclosed a problem with its accounts. Earby Light Engineers has two factories in Colne and one in Kelbrook employing more than 250 people.
It specialises in machining of metals for the aerospace and automotive industries. Last week, shares in TransTec were suspended after it was revealed that an £11million customer claim had not been properly entered into the accounts.
A £7.5million portion of the claim had now been paid, of which £5.5million had been charged to the profit and loss account and £2million described as "tooling expenses."
Chief executive Richard Carr and finance director Bill Jeffrey both left TransTec after the problem came to light. However, the company has already been hit by an increasing mountain of debt and slowing sales.
Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article