M&E design firm Cameronaire Environmental has gone into administration
Accountancy firm Tenon was called in to the £11m-turnover private company last Friday after its banks refused to renew Cameronaire's lending facilities.

Joint administrator Tom MacLennan, who was appointed with Simon Thomas, said: "Substantial cash flow problems led to this decision. The firm has had trading difficulties for a while."

MacLennan said Tenon was in the middle of closing the firm's office in West Byfleet, Surrey, which accounted for 30% of the firm's operations. Eight staff are employed there and redundancies are expected.

He said he was in talks over selling the firm's operations in Glasgow this week. The Glasgow office has 12 staff. MacLennan said Cameronaire's operations in Scotland had been put on hold pending a possible sale.

He said he had held talks with clients in Surrey over whether work could be transferred to other firms.

Cash flow problems led to this decision. The firm has had trading difficulties for a while

Joint administrator, Tom MacLennan

Cameronaire's directors bought the firm from former chairman Duncan Cameron in November last year. MacLennan said the management, including managing director Edwin Young, was staying for the time being.

The firm, originally set up in 1984, specialised in M&E heating and ventilating, maintenance and air-conditioning. Its clients included London Underground, supermarket group Asda, the Science Museum in west London, the Hilton Hotel Group and fast food chain McDonald's. The firm acted as mechanical contractor partner when Asda upgraded and expanded its store in Watford, Hertfordshire.

On Cameronaire Environmental's website, the firm describes itself as a medium-sized company with a turnover of £11m which prided itself on the reliability and quality of the delivered product.