150 made redundant as Lincolnshire’s Clugston Group enters administration

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James Clark and Howard Smith from KPMG’s Restructuring practice have been appointed joint administrators to Clugston Group Limited and Clugston Construction Limited. In addition James Clark and Chris Pole from KPMG’s Restructuring practice have been appointed joint administrators to Clugston Services Limited.

Operating from over 25 sites primarily across the North and Midlands, the business has companies involved in construction, civil engineering, logistics, property development and facilities management.

The businesses have suffered as a result of losses on a number of 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 have caused the directors to seek the appointment of administrators.

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.

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 Limited and Clugston Estates Limited are not affected by the above and are continuing to trade under the control of their directors.