A UK clothing manufacturer is the latest business to close for good, with all its employees laid off in another blow to the economy.
Aberdeen-based North East Rig Out has fallen into liquidation after 40 years of business, with the firm's remaining eight workers having been made redundant.
The clothing manufacturer specialised in workwear, school uniforms, and bespoke protective clothing to customers working across multiple sectors in the region.
Said sectors include the oil and gas industry based in Aberdeen, engineering, construction, transport and retail.
A UK clothing manufacturer is closing down for good
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Insolvency advisory firm MHA has been appointed liquidator of the proceedings after a resolution was passed to wind up the North East Oil Rig Out voluntarily.
Official liquidation documents filed under the Insolvency Act 1986 revealed that a meeting held on April 15 resolved that the company would not be able to trade because of existing liabilities.
The liquidator partially blamed the collapse of the business on ongoing issues impacting Scotland's energy sector, primarily the financial costs the industry faces.
Michael Reid, a partner at MHA, shared: "This is a difficult situation for everyone involved.
The company is based in Aberdeen
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"The company faced sustained pressure as a result of the prolonged downturn in the energy sector, which has affected many businesses across the North-east.
"Unfortunately, eight people have been made redundant. Business assets have been sold by auction, and the premises returned to the
According to North East Oil Rig Out's website, the manufacturer is "the only direct workwear manufacturer in the Aberdeen area. With over 40 years of experience creating workwear, our garments truly are second to none".
The firm added: "Whether your requirement is one of our ‘off the shelf’ garments, a ‘made to measure’ coverall or garment, or a bespoke garment our designers and manufacturing team offer a service that is truly unique."
Examples of some of the clothing offered by the manufacturer
|NORTH EAST OIL RIG OUT
Outside of manufacturers, the British high street has been directly hit by business closures and liquidations in recent years.
Molly Monks, an insolvency specialist at Parker Walsh, said: "The transformation of retail was already underway, but the cost of living crisis has dramatically accelerated the closure of stores that might otherwise have survived another few years.
"Discretionary spending has collapsed in many categories and footfall on high streets outside major city centres remains stubbornly below pre-pandemic levels.
"Meanwhile, business rates continue to penalise physical retail in a way that online competitors simply do not face, an imbalance that the government has failed to correct."