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CLUGSTON GROUP APPOINT ADMINISTRATORS

Facilities Management Featured

CLUGSTON GROUP APPOINT ADMINISTRATORS

Gavin Nicholls

Administrators have been appointed at a construction, property, logistics and facilities management group, with 150 jobs due to be lost.
James Clark and Howard Smith from KPMG’s Restructuring practice have been appointed joint administrators to Clugston Group Ltd and Clugston Construction Ltd. In addition, James Clark and Chris Pole from KPMG’s Restructuring practice have been appointed joint administrators to Clugston Services Ltd.
Clugston Group operates from more than 25 sites, primarily across the North and Midlands, and has business has companies involved in construction, civil engineering, logistics, property development and facilities management.
The businesses have suffered as a result of losses on several large and complex energy from waste contracts, accentuated by the insolvency of a key subcontractor. Despite negotiations with key stakeholders to resolve issues caused by the losses, mounting pressures on the business led to the directors appointing administrators.
Following the appointment, 150 of the companies’ 412 employees have been made redundant.
The joint administrators will continue to trade certain divisions and are seeking to sell valuable contracts, with 262 members of staff retained to assist with this. Interested parties have been urged to contact KPMG as soon as possible.
James Clark, associate partner at KPMG and joint administrator, said: “The directors of the business have worked tirelessly trying to rescue the group and have pursued discussions with a key stakeholder about a potential rescue deal. Unfortunately, it has not been possible to obtain the funding required, and as a result, the directors concluded they needed to appoint administrators to protect the value of business.
“Our focus over the coming days will be to seek buyers for the contracts and divisions, and to liaise with those employees who have been made redundant, ensuring they are provided with the support and information they need to claim their statutory entitlements from the Redundancy Payments Office.”
Clugston Distribution Services Ltd and Clugston Estates Ltd are not affected by the above and are continuing to trade under the control of their directors.
Tim Doggett, director at Clugston Distribution Services, added: “Despite the unfortunate news regarding parts of the wider Group, Clugston Distribution Services Ltd continues to trade as normal. We are a standalone entity and will continue deliveries as scheduled. We are working closely with various stakeholders to ensure continuity of supply and we thank our suppliers, customers and of course our employees for their continued support.”

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