Report suggests construction group collapsed with debts of over £40m

Scunthorpe-based construction and civil engineering company Clugston Group is rumoured to have racked up debts of more than £40 million by the time of its collapse, according to a report by Construction Enquirer.

The Group was forced to make 150 employees redundant last week after three of its companies fell into administration.

Construction Enquirer says the full story surrounding Clugston’s financial affairs remains unclear, but says that “rumours of the high level of debt” began to circulate after administrators were called in.

James Clark and Howard Smith from KPMG’s restructuring practice were appointed as administrators to Clugston Group and Clugston Construction, while Clark and Chris Pole were appointed joint administrators to Clugston Services.

As previously reported by TheBusinessDesk.com, Clugston’s haulage and property businesses are unaffected and will continue to trade as normal.

Clark, an associate partner at KPMG, said: “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.”