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Redundancies as Brompton electrical business enters liquidation

An electrical contracting firm at Brompton in Adelaide’s western suburbs is in liquidation, with the immediate loss of 45 positions.

The almost 30 year-old VIP Electrical business had encountered critical cash flow difficulties, according to Peter Lanthois from DuncanPowell.

While VIP Electrical held a forward order book in excess of $3 million, Lanthois said some of this work was not contracted to commence until the new financial year.

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.

VIP Electrical was established in 1987 and had been a constant supplier to the industrial, mining and manufacturing sectors.

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