Subsea cable firm DeepOcean has put 90 jobs at risk in the North East after deciding to close three of its businesses.
The Dutch company told creditors that it intends to close three of its subsidiary business: DeepOcean 1 海角视频 Limited, DeepOcean Subsea Cables Limited, and Enshore Subsea Limited.
The three businesses form part of the company鈥檚 cable laying and trenching business, which DeepOcean plans to wind down.
Around 90 onshore jobs have been put at risk across sites in Darlington and Port of Blyth.
DeepOcean said it had now entered into a consultation period with employees and was exploring different options with its advisors.
DeepOcean鈥檚 CEO 脴yvind Mikaelsen said the companies were being closed after an extended period of loss making across the cable laying business.
Mr Mikaelsen said: 鈥淒espite our long-term commitment to the cable lay and trenching division, it has been loss-making for some time. We have invested and explored structural alternatives to turn around the business.
鈥淗owever, the division is not sustainable and there is no prospect of it becoming profitable under current market conditions and with current contractual obligations.
鈥淯nfortunately, we have come to the difficult decision that to propose an orderly wind-down of the business is the only viable option. This provides greatest certainty to affected employees, and facilitates protection for creditors.
鈥淭his allows the rest of the group to move to a secure financial footing and continue to provide jobs and create value for stakeholders. This decision is no reflection on the hard-work and commitment of our valued employees, who we are supporting through a consultation process.鈥
DeepOcean 1 海角视频 Limited is the longest established of the three companies and was established in Darlington in 1993.
According to its most recent accounts, for the year ending December 2018, the company employed 142 staff. At the time the company owed creditors 拢50.6m which was due within one year.
The other two companies were both incorporated in June 2019.
The three affected companies have filed a practice statement letter (PSL) with the High Court in London and have distributed a copy to its creditors. The PSL informs creditors of the group鈥檚 restructuring plans.
A court hearing will be held on December 15, at which DeepOcean will seek permission to hold a meeting with its creditors to vote on the plans.
