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Clugston jobs loss as 150 staff go at construction firm

Clugston sign
Image caption Administrators said 150 Clugston staff had been made redundant

A construction firm has gone into administration, with 150 staff being made redundant.

Clugston, based in Scunthorpe, North Lincolnshire employs more than 600 people across a number of UK companies.

The firm's workers were called into a meeting earlier with administrators KPMG.

It has suffered losses on energy from waste contracts and the insolvency of a key subcontractor, said the joint administrator in a statement.

The family-run company was founded more than 80 years ago and is involved in construction, civil engineering, and property and facilities management.

It operates from more than 25 sites many across the north and Midlands, said administrators.

Worker Terry Curry said: "I don't think it has really hit home, it's terrible, absolutely terrible."

Administrators have been appointed to Clugston Group Limited, Clugston Construction Limited and Clugston Services Limited, said KPMG.

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James Clark, a 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."

The administrators said it was to keep some divisions trading with 262 retained staff and they would try to sell new contracts.

Union Unite said it had about 40 members at Clugston and was seeking an urgent meeting with KPMG.

"This is devastating news for Clugston workers who have been told they will not be paid before Christmas," said Unite's John McIntyre.

Clugston Distribution Services Limited and Clugston Estates Limited are not affected and continue to trade under the control of their directors.

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