251 job losses as Hewden goes into administration

CASH-strapped heavy machinery rental specialist Hewden, based in Stretford, Greater Manchester, has gone into administration with the loss of 251 jobs.

Sam Woodward and Colin Dempster of EY’s restructuring team were yesterday (Tuesday November 22) been appointed joint administrators.

This follows a complaint by the high-profile company that Brexit uncertainty had caused its financial predicament.

Woodward said: “Management has been attempting to operationally reshape the business to focus on higher margin and quicker returning assets and services.

“However, this has proven challenging with the group’s capital structure and the recent trading environment.

“Management recently undertook a number of initiatives including approaching new funders and potential acquirers to recapitalise the business, but unfortunately these efforts proved unsuccessful.”

Three divisions of the group have been sold today to Ashtead Plant Hire Company Ltd, the access and power generation assets, the on-site plant business and the business and assets of Interlift Ltd for £29m. A total of 133 employees will transfer across with the businesses.

Woodward continued: “We are assessing the optimum strategy for maximising value in the remainder of the group.  In the meantime, we will continue to work with stakeholders to maintain service levels to customers who have assets oire.”

On appointment of the administrators, a total of 251 employees were made redundant across the company’s depot and on-site locations.
 
Employees affected by redundancy are being offered appropriate advice and support in making claims from the Redundancy Payments Office for outstanding wages, as well as redundancy and notice pay.

Woodward concluded: “It is with regret that 251 people have been made redundant. Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office.”

Addleshaw Goddard acted for EY as administrators.

Ashtead Plant Hire was advised by a team from Squire Patton Boggs, including John Alderton, Jenny Jones, Charlie Draper and Matthew Lewis.

Hewden’s last set of accounts for the company were filed a year ago and cover the financial year to the end of December 2014, for which it reported a £16.6m loss.

Meanwhile, the news of Hewden is going into administration was described as a “sickening blow” by Britain’s largest union, Unite as it pledged to fight to secure as many jobs as possible.

Unite has been in contact with EY over today’s announcement which affects more than 750 staff across the UK including crane drivers, customer service staff, plant fitters and maintenance crews.

Unite national officer Bernard McAulay said: “This is a sickening blow for workers in the run up to Christmas and is the result of a succession of venture capitalists hawking Hewden around the market over a number of years to make a quick buck.

“Unite will be fighting to secure the futures of Hewden workers and supporting them in any way we can through this difficult time. We are currently in contact with the administrators over the transfer of workers to A-Plant, in addition to other crane operators and plant hire companies to try and find work for under threat Hewden workers.

“Unite will also be working closely with the administrators to ensure worker’s aren’t short changed out of their pensions and that a future for the company’s workers can be secured.”