Peter Lanthois of restructuring specialist DuncanPowell said the nearly 30-year-old business VIP Electrical could not trade through the mining downturn.
He said the workers were told this morning their jobs would be lost immediately.
“While VIP Electrical held a forward order book in excess of $3 million, some of this work was not contracted to commence until the new financial year,” Lanthois said.
“High costs coupled with delays in the commencement of several projects created severe pressure on cash flow.
“Because of the current downturn in mining and related sectors and restrictive cash flow, the business was not in a position to restructure and trade through the cycle.”
Lanthois stressed that the company was not related to the national VIP franchise operation.
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