FIFTY people have been made unemployed after an engineering firm shut down with debts of more than £1.5million.

Belmar Engineering, which was based on Eldon Way industrial estate, Hockley, has been handed over to administrators Begbies Traynor, after trading for 26 years.

The metal manufacturer has guaranteed £45,800 will be paid to some employees, but further redundancy claims, of more than £250,000, are unlikely to be settled in full.

In a report written for creditors, administrators Louise Baxter and Lloyd Biscoe said: “It is anticipated that unsecured creditors may receive a dividend on the matter.

“In order to pay such a dividend, the company will be placed into creditors’ voluntary liquidation, at which stage creditors will be invited to formally submit their claims.”

Belmar started trading in 1985 as a boat trailer manufacturer based in Burnham. The business moved to Hockley two years later and eventually expanded to six units in Eldon Way industrial estate.

In 2006, the business invested £350,000 in a struggling subsidiary, Belmar Plastics, which subsequently closed a year later. Despite the difficulties, Belmar’s annual turnover had reached £4million by 2008, but the recession forced many of its customers into problems and its sales had halved by 2009.

James Whitehouse, the firm’s director, agreed to place it in administration earlier this year.

Reports filed with Companies House reveal Belmar, in addition to the redundancy payments, owes more than £694,000 to fellow traders and £563,000 to the taxman.

Jeff Stanton, chairman of Hockley Chamber of Trade, said: “Jim Whitehouse has been a local employer on Eldon Way for many years. It’s tragic to lose another manufacturer in the village.

“Unfortunately, many of the buildings on the trading estate are old and outdated, so it may be difficult to find new occupants.

“It is slowly getting taken over by leisure pursuits, which are clashing with lorries making deliveries and posing more problems.”