MORE than 40 workers at a former East Lancs steelworks specialist are entitled to a redundancy payout, an employment judge has ruled.

Last October James Killelea and Co in Crawshawbooth, Rossendale, closed suddenly and administrators were called in.

Company bosses said the 53-year-old firm had seen its annual turnover plunge by 50 per cent.

And accounts for 2022 showed the outfit, which specialised in structural engineering services including 3D building design, structural steel fabrication and erection, had made a pre-tax loss of £772,000.

An employment tribunal claim was lodged by Timothy Justice and 41 other workers, to secure a protective award on the grounds there was a failure to consult staff regarding the closedown.

The firm, or administrators Leonard Curtis, did not file a defence to the claim, a Manchester hearing was told.

Employment judge K Ross said: "More than 20 employees were informed Friday, October 13, by Robert Killelea and/or the administrators and/or their line manager that they were being made redundant with immediate effect.

"The company entered formal administration on October 18, according to Companies House.

"Some of the claimants were made redundant slightly later during the protected period, after Friday October 13.

"There was no proper warning or notice given to or consultation with the workforce. No employee representatives had been elected or appointed for any such consultation."

Employment judge Ross ruled this was a breach of the Trade Union and Labour Relations (Consolidation) Act 1992 and made protective awards to Mr Justice and 41other workers.

A company spokesman said at the time of the closure: "It is with great sadness we announce the closure of James Killelea & Co. Ltd.

"The company had enjoyed 53 years of uninterrupted trading to become a major supplier throughout the UK of numerous steel framed structures for a wide range of sectors such as, stadia, commercial, retail, transport, industrial and warehousing.

"We have been privileged to assist in the building of the infrastructure of our country and this could only have been possible with the talent and dedication of our loyal staff, many of whom we had drawn from our local community. None of what we have achieved would have been possible without them.

"However, the business while operating within a highly competitive industry has been severely financially affected by the impact of Covid, fluctuating markets, escalating material prices and rising energy costs.

"The current downturn in the construction industry has resulted in this unfortunate situation and despite the best efforts of the directors to rectify matters administration was the only option."

Administrators estimated the firm owed £3.48m in trade debts and to staff and directors at the time it ceased trading.

The steel fabrication firm was founded by James Killelea and his son Robert.

Robert, 79, served as the firm's managing director, and his brother Patrick, 68, joined the family business later as financial director, and Ellen Killelea worked as the company secretary.