FAMILIES are facing up to redundancy today after a company with a base in Felixstowe went into administration following the collapse of a major customer.

FAMILIES are facing up to redundancy today after a company with a base in Felixstowe went into administration following the collapse of a major customer.

LEC Marine (Lowestoft) Ltd has had to axe around 40 jobs. Some 25 of them are in the West Country with the rest spread between the firm's operations in Felixstowe, Lowestoft and Great Yarmouth.

The company's problems began after it carried out electrical installation work on two Ministry of Defence vessels being built by Appledore Shipbuilders in Devon.

The shipyard went into receivership last month, leaving substantial amounts owning to a number of contractors – reportedly more than £1 million in the case of LEC Marine.

Managers at LEC Marine filed for administration last week and the company's affairs are now in the hands of Steven Law from Suffolk chartered accounts firm Ensors.

Mr Law said: "We are working on plans to restructure the company so that it may survive into the future.

"Although this will involve some short-term pain, the underlying business is viable and this temporary administration should help to ensure the company's survival in the longer term.

"I am delighted with the support and co-operation received from the company's management and staff."

Dennis Edwards, managing director of LEC Marine, said: "The receivership of Appledore left us with little choice but to place the company into administration.

"The process will enable us to restructure the business which was set up by my father more than 50 years ago. The business has always traded profitably and you can imagine that the Appledore situation was a major blow."

The administration only affects LEC Marine (Lowestoft) Limited, which has a total workforce of around 200. Other companies in the LEC group are unaffected.

The collapse of the Appledore shipyard last month, which was blamed on a lack of new orders, involved more than 500 job losses directly and has also led to at least 35 other redundancies in the Devon area.