WORKERS have lost their jobs after part of a company founded in the aftermath of a collapsed steelworks ceased trading.

Administrators met with bosses at Cleveland LGV Transport in Middlesbrough earlier this week, and following discussions, the haulage side of the business has closed, with 25 workers being affected.

The company was founded by Dan Wilcox in January 2016 just months after the closure of the SSI steelworks in Redcar was highlighted by many as a flagship success story following the end of steelmaking on Teesside.

He then decided to launch Cleveland LGV, with the help of the SSI Task Force, to create jobs for the redundant steel plant workers and to “give something back” to the area.

Mr Wilcox, who spent four-and-a-half years as an LGV driver at SSI before the closure of the site was confirmed in October 2015, declined to comment.

A spokesperson for FRP Advisory said "FRP Advisory confirmed it is meeting with directors of Cleveland LGV Transport Limited, a haulage and HGV training business, to undertake a review of the business and discuss restructuring options for the company.

"The haulage side of the business has ceased operations, with currently 25 staff having been affected."

Cleveland LGV received £10,000 from the SSI Task Force, which was set up to support new business start-ups, growing businesses and provide help to companies in the SSI supply chain, as well as help workers and families affected by the plant’s closure.

The task force was launched in September 2015 and has gone on to support hundreds of new jobs, create dozens of business start-ups and ensure all 50 former SSI apprentices found training or employment.

Amanda Skelton, chair of the SSI Task Force and chief executive of Redcar & Cleveland Borough Council said: “It is really sad that this company has experienced such difficulties.

"We are particularly concerned for the individuals and families involved.

"Many new businesses experience challenges, particularly in the first few years of trading. We will continue to work with the business owners and any staff affected to minimise the impact.”