Almost 130 redundancies at Scunthorpe-based Clugston

A further 128 jobs will be lost at Scunthorpe-based Clugston Group after the joint administrators of Clugston Construction concluded a deal to transfer their employment to French contractor CNIM.

A total of 82 people under the group umbrella have managed to retain employment through a series of deals.

Clugston Group, which employed over 400 people with operations stretching across the UK, owns Clugston Construction and the haulage business Clugston Distribution Services. It was confirmed in December that a total of 150 of the companies’ 412 employees had been made redundant by the move.

James Clark and Howard Smith of KPMG LLP were appointed joint administrators of Clugston Group Limited and Clugston Construction Limited on December 6, 2019. They were also appointed Joint Administrators of Clugston Services Limited.

However, Clugston Distribution Services Limited and Clugston Estates Limited are not in administration and continue to trade as normal.

CNIM had been working alongside Clugston on five energy from waste projects, where construction will continue. It was also confirmed that the 67 staff who have been transferred to CNIM are not Lincolnshire-based employees.

Working with the respective customers, staff working on three facilities management contracts have also been transferred to alternative suppliers, safeguarding the employment of an additional 15 people who worked for Clugston Services.

It was not possible to conclude negotiations, so a further 128 of Clugston’s employees have had to be made redundant. However, it is not yet clear if these are Lincolnshire-based employees.

There are a further 51 employees who continue to assist the administrators as they negotiate additional contract sales and deal with the affairs of the companies.

James Clark, Joint Administrator from KPMG, said: “We are very pleased to have secured employment for 82 members of the Clugston workforce through a series of deals, but equally acknowledge what a difficult time it is for those employees who have had to be made redundant. I’m grateful to all Clugston staff for their professionalism, and to the Insolvency Service for dealing with statutory payments promptly.”

Tim Doggett, Director at Clugston Distribution Services, previously said last month: “Despite the unfortunate news regarding parts of the wider group, Clugston Distribution Services Limited continues to trade as normal. We are a standalone entity and will continue deliveries as scheduled. We are working closely with various stakeholders to ensure continuity of supply and we thank our suppliers, customers and of course our employees for their continued support.”

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