130 jobs at risk as engineering company collapses

Wollongong-based business Southern Engineering Services has collapsed with Shaun Fraser and Barry Kogan of McGrath Nicol appointed as voluntary administrators.

SES operates several mining services businesses and employs around 130 staff in locations across New South Wales, Queensland and Western Australia.

The business has been operating for 25 years and is owned by chairman Paul Wenham.

“SES is a proud Australian family owned company, with three generations of Wenhams actively involved in the company today,” the business’ website states. 

But now the administrators have assumed control of SES and are undertaking an “urgent review” of its operations.

This review resulted in the administrators making 21 employees redundant, the majority located at SES’ Unanderra and Kurri Kurri locations.

Fraser said making the redundancies “was not a decision taken lightly”.

“The redundancies are regrettable but necessary as we work to place the company’s operations on a viable footing,” he said in a statement.

“Our focus now is on pursuing available options to position Southern Engineering for sustainable operations in future.”

The administrators are unable to provide information on the reason behind SES’ collapse but the administration follows the high profile collapse of another engineering company operating in the mining industry, Forge Group, earlier this year. 

Wenham hinted at some of the challenges for the family-run business in an interview with BDO in 2009. 

“All family businesses face growing pains in financing, debtor carry, stock carry and management growth,” he said.

 The first creditors meeting will be held in Sydney on Wednesday, August 28.