UP to nine people have been made redundant after a lubricant distribution company formed less than two years ago was forced out of business.

Brett Oils Business Services Ltd (BOBS) was formed by managing director Alistair Hain in May 2005 when his old employer Brett Oils sold Ovoline Lubricants to German company Fuchs Lubricants, and its Brett Fuels business to Flogas from Leicestershire.

BOBS bought a customer list from Fuchs, and set up in business distributing the company’s products in the North-East.

The new company started out operating from Brett’s premises at Pipewellgate in Gateshead. The business traded profitably for its first 18 months and then took new warehouse and office premises at Morston Quays in Wallsend in March this year.

Regional development agency One NorthEast backed the expansion plans and helped to create several jobs. Mr Hain said the company was hit “by several problems outside its control” including allegations that the business was passing off as Brett Fuels, and a fine for an alleged breach of environmental regulations involving a small amount of oil found in the Tyne. The latter was later quashed on appeal.

Mr Hain says those issues, along with other problems with commissioning the new premises put pressure on the company’s finances and he moved to sell the ‘packaged distillates’ side of the BOBS business.

The company’s bank supported a revised business plan in July this year but then Mr Hain says delays in completing the legalities of the new funding package meant that by the end of last month BOBS was technically insolvent and he started voluntary liquidation proceedings.

A creditors’ meeting will be held next Tuesday, October 16, at RMT accountants in Gosforth.

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