More than 150 jobs secured as sale agreed for Clugston Distribution Services

The Joint Administrators of Scunthorpe-based Clugston Group have successfully agreed a sale of the share capital of Clugston Distribution Services.

Clugston Distribution Services, which was not part of the insolvency process and continued to trade as normal in recent weeks, has been acquired by AJWG Limited.

The transaction, which follows a marketing process by KPMG, ensures Clugston Distribution Services continues to trade as a standalone entity, preserves value in the supply chain and secures the jobs of 153 employees.

James Clark, joint administrator of Clugston Group, said: “This sale represents a positive outcome for Clugston Distribution, its stakeholders, and for the local area.

“A solvent sale ensures ongoing trade for the business, its supply chain, and, furthermore, helps secure jobs for the incumbent workforce. The deal is testament to the considerable efforts of the senior management team at Clugston Distribution and my colleagues who have worked tirelessly to secure the future of the business.

“Of course, there is still much more work to do. We continue to explore all options as we look for buyers for the contracts and divisions in administration.”

Clugston Group Limited, Clugston Construction Limited and Clugston Services Limited remain in administration after the appointment of Administrators in December 2019. As was reported at the time, 150 of these companies’ 412 employees were made redundant.

Clugston Estates Limited is unaffected by the administration and continues to trade under the control of its directors.