A pre-pack administration at Lancaster-based OEP Building Services, which makes pre-fabricated bathrooms and utility pods, has saved the jobs of all 88 staff.

The company had suffered cashflow problems due to the impact of COVID and challenges including the administration of key customers and suppliers.

Following the appointment of administrators from Dow Schofield Watts on November 3 2021, staff and key contracts were transferred to a sister company.

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OEP Building Services was founded in 2011 and offered project management and installation services at construction sites, using pods from a supplier in Poland.

Following the announcement of Britain’s exit from the EU, in 2017, the company launched its own manufacturing operation.

It initially employed 30 staff and worked in partnership with a manufacturer in Bradford.

However from 2019, the company suffered a series of challenges including the collapse of a key customer, a dispute with its insurance company over a pay-out and, following the onset of the pandemic, a five-week closure of its factory.

The company lost a £4million contract and suffered the loss of a major loan facility, following the collapse of its peer-to-peer lender, as well as the administration of two suppliers including its sub-contract manufacturing partner.

While the company was able to step up production in Lancaster, it was hit by sharp rises in materials costs on its fixed-price projects.

Lisa Moxon of Dow Schofield Watts, administrator to the company, said: “In the space of a few years, the OEP team have developed market-leading products, built up a UK manufacturing facility from scratch and become a major local employer.

“Sadly they have been hit by a series of challenges, ranging from the pandemic to the collapse of key customers and partners and unprecedented rises in materials costs.

“Despite the best efforts of directors, they had little option but to put the company in administration.

“The pre-pack represents a fresh start for the business, enabling it to continue to meet the growing demand for modular building products, and save the jobs of all 88 skilled workers.

“We wish them all the best for the future.”