THE founder of a Horwich airflow technology firm which went into administration with the loss of 70 jobs has expressed his sadness at the closure.

Mach-Aire, based in Bridge Street, stopped trading on Friday and announced that all full-time and part-time staff had been made redundant.

Administrators said the firm, which had a turnover of £8 million, had suffered “substantial losses” on certain contracts and had been having cash-flow problems.

The firm’s former managing director, Roy Allwood, who set-up the business in 1992 but left in October, said he was “very sad” to hear the news.

He added: “I am very upset for the employees of Mach-Aire, many of whom have been extremely loyal to the company and some who have actually been there from the very start.

“We had some good times together and enjoyed the periods of success in the past — I am just sorry that it came to an end in the manner that it did.”

It is believed that weekly paid staff received payment last week for their work in February but monthly paid staff, who were paid at the end of January, will not receive any payment for their work this month.

Mr Allwood, aged 58, said he believed that the directors of Mach-Aire were indeed suffering with cash flow issues and were not prepared to risk further investment.

He said: “I believe they had some interesting projects in the offing but I understand the directors were not prepared to put any more money in.”

Bolton-based law firm KBL has now launched a group action on behalf of some former employees and is asking for others to get in touch.

Employment law specialist, Christine Hart, said: “We have received enquiries from a number of former employees of the company and we are hoping to be able to assist them with a group action in the employment tribunal. If any other former employees are interested in joining the group or would like more information, I would be happy to discuss matters further with them.”

KBL can be contacted on 01204 527 7777.