Administrators have confirmed that 60 staff members have been made redundant at Penman Engineering Ltd in Dumfries.
15 jobs currently remain at the firm.
The company went into administration on 31 August 2016.
Penman had been in business since 1859 and employed around 140 people.
The administrators, Armstrong Watson, released this statement:
Yesterday (Thursday 29 September 2016) was a very significant day in the administration of Penman Engineering Limited. Whilst all staff have been working very hard and co-operating fully with the administration team on site to move trading forward the decision had to be taken by the administrators to make 60 staff redundant. Delays in receipt of certain funds from customers meant that the administration did not have the cashflow to maintain a workforce of 75 people, and could not make the various payments to employees at the time normally expected by employees under their contracts of employment. The administrators have been seeking recovery of those funds from customers, and will continue to do so. All staff affected will be kept informed and payments will be made as soon as funds become available.
15 employees have been retained by the administrators to help complete various tasks relating to the collection of remaining debts and the ongoing sale of the business.
Unions and politicians say they are doing all they can to protect 140 jobs at a Dumfries firm, which has entered administration.
An engineering company in Dumfries has gone into administration. Penman has been in business since 1859, and employs around 140 people.