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Spray booth manufacturer Gallito Group has ceased trading and all 16 staff made redundant following sustained losses and rising costs.
Administrators for the Wetherby-based manufacturer say efforts were made to sell the firm before it closed its Thorp Arch Trading Estate operation.
Gallito, which built painting, shotblasting and powder coating facilities for a range of industrial customers, was part of the DCS Group.
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A spokesperson for administrators Grant Thornton UK LLP said : ‘On May 23, 2022, Richard Oddy and Chris Petts were appointed joint administrators to Gallito Group Limited and Gallito Limited.
“Based in Wetherby, Yorkshire, the group, a specialist manufacturer of spray booth and surface preparation equipment, had suffered losses for a significant period of time as a result of a number of factors including several onerous contracts and rising costs. At the same time its sales pipeline also suffered a downturn.
“Despite attempts pre-administration and after to sell the company as a going concern, the administrators have reluctantly concluded there is no prospect of this outcome being achieved and the business has now ceased to trade. Consequently all 16 members of staff have unfortunately been made redundant.”
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Read More: Jobs lost as administrators called in to Wetherby’s Gallito Group