The engineering arm of the collapsed airline Monarch has gone into administration, resulting in the loss of 450 jobs.
KPMG was appointed to carry out the process after Monarch Aircraft Engineering (MAE), owned by the private equity firm Greybull Capital, ran into financial difficulties.
The accounting firm said the business was unsustainable in its present form following a company voluntary arrangement (CVA) in October that led customers to seek alternative suppliers.
David Pike, a restructuring partner at KPMG, said: “Following the administration of other Monarch entities in 2017, MAEL sought to build its customer base to replace the loss of business from the former airline.
“Through the insolvency of the airline, however, the company inherited significant debts and claims. Every effort has been made to turn around the business, including launching a CVA which sought to resolve these legacy debts.
“Unfortunately, following the CVA, a number of customers reduced or sought to terminate their relationship with MAEL, further adversely impacting the business.”
Founded in 1967 and headquartered at Luton airport, MAE provides aircraft maintenance services across four main divisions: base maintenance, line maintenance, fleet technical support and a training academy.
Earlier this week, MAE said line maintenance operations at Gatwick, Birmingham, East Midlands, Newcastle and Glasgow airports would be largely transferred to Morson Group, with the Luton airport operations transferring to Storm Aviation.
Some Gatwick-based employees had transferred to Boeing.
Further operations at Manchester and Birmingham airports, including their employees, were transferred to Flybe in November.
Collectively, those acquisitions safeguarded 182 jobs.
Monarch Airlines, which was also owned by Greybull, collapsed in 2017, leading to 1,858 workers being made redundant and the flights and holidays of about 860,000 people being cancelled.
The engineering arm is the last remaining entity of the failed carrier. KPMG is still seeking buyers for the fleet technical support division, which employs 27 people, and the training academy, which has 53 people on its books.
Pike said: “We will also be making every effort to provide support to those employees who have been affected by redundancy. As following the failure of the airline, employment fairs will be held in the coming days in Luton and Birmingham, to help these employees secure new roles.”