KPMG has appointed Blair Nimmo and James Lumb as joint administrators of Penman MW, which trades as Penman Engineering.
The Dumfries company, which has been in operation since 1859, employed 61 people on its 15-acre site. The company specialises in the design, construction and software development of armoured military and security vehicles.
The company was saved from a previous administration in 2017. KPMG said that despite its “long heritage and considerable efforts” the business was now unsustainable.
Some 44 employees have now been made redundant, while a further 17 employees will be retained to assist the administration process.
Nimmo, head of restructuring at KPMG UK and joint administrator, said: “Penman Engineering has a long heritage of producing highly specialised armoured vehicles from its base in the south of Scotland.
“The company’s experienced, knowledgeable team has worked tirelessly to find long-term sustainable solutions, but – regrettably – cashflow challenges have left the owners with no other choice but administration.”
He added: “Our focus as administrators will be on assessing what options are available for the business and ensuring clients and impacted staff members are fully supported throughout this difficult process.
“This includes working closely with Skills Development Scotland, via their PACE team, to support those who have been made redundant.”