Barnstaple manufacturer ceases trading after 75 years in business

A total of 23 staff have been made redundant

A Devon engineering business which had been manufacturing for more than 75 years has ceased trading, with the loss of 23 jobs. Witon Engineering was established in 1948 and developed and made precision-turned parts for use in a wide range of industries.

At its peak, the family-owned company employed more than 60 people at its Barnstaple headquarters.

But in recent years, the firm had faced financial difficulties caused by economic uncertainties linked to Brexit, the Covid pandemic and the war in Ukraine. It is understood that significant increases in energy and operational costs also put pressure on margins.

Witon Engineering entered creditors’ voluntary liquidation on Thursday, September 10, following sustained financial challenges, exacerbated by a fall in customer confidence and sales in recent months after a strong start to the year, the business said.

Business Live understands the directors decided “there was no reasonable prospect” of the company returning to sustainable profitability and as the firm was unable to meet its liabilities – the money it owed – the board agreed to cease trading.

Nick Harris and Lucinda Coleman, partners in the restructuring team at PKF Francis Clark, were appointed joint liquidators and are now seeking buyers for Witon’s assets.

A total of 23 employees were made redundant after the company closed its doors in July.

Mr Harris said: “It’s always sad when a longstanding and well-regarded business like Witon Engineering is unable to continue trading. Despite the directors’ efforts to control expenditure, improve efficiencies and pursue new business opportunities over recent years, unfortunately there was no viable alternative to liquidation in the circumstances.

“Our focus now is on realising the assets of the company in order to deliver a return to creditors. We expect a high level of interest in the company’s assets, especially the large amount of engineering plant and machinery.

“We will also be supporting former employees in making claims for any amounts they are entitled to from the company through the Redundancy Payments Service.”

Specialist agent Simon Cornelius-Light, of commercial property firm Lambert Smith Hampton, is assisting the liquidators with the sale of the assets.

“We are delighted to be offering a range of high-quality machine tools for sale, which are already generating significant interest both across the UK and internationally,” he said. “The machinery will be available to purchase via online auction in the coming weeks.”

Creditors and interested parties are being advised to contact Lucy Roberts at PKF Francis Clark on 01392 302643 or lucy.roberts@pkf-francisclark.co.uk.