Wrekin fury as administrators appointed
WREKIN Construction has gone into administration, putting 600 jobs under threat.
The Telford-based company said that all 48 staff at its Runcorn rail division would lose their jobs and blamed its bank, The Royal Bank of Scotland, for its situation in a damning statement.
Richard Cox, a spokesperson for the company, said: “We had an overdraft facility of £4.25m and were overdrawn by £2.5m. However, winding up petitions have resulted in the account being frozen.
“Our current order book up to March 2009 was £40m for the calendar year. Today, Wrekin has received confirmation of two new orders, each valued at £5m a year for the next five years.
“As a result of the administration the tax payer may have to make redundancy payments of £2.5m and there will be the ongoing unemployment costs for more than 500 employees.
“All Wrekin Construction needed to keep going in a very competitive market was £2m to 3m.”
Ian Best and Tom Lukic of Ernst & Young, who have been appointed as administrators of Wrekin Group Limited and Wrekin Construction Company Limited, said they will be “reviewing the financial position of the business over the coming days”.
The group also has sites in Bradford and Wellingborough.
