Industry rallies to support Clugston workers

The construction industry is rallying together to help 150 workers – and possibly others in the supply chain - who have lost their jobs after the Clugston Group collapsed last week. 

The Scunthorpe-based contractor filed for administration last Friday (6 December), with its construction, logistics, facilities management, property and surveying businesses all impacted. The group employed 400 construction staff from a total workforce of 629.

It has suffered losses on energy from waste contracts and the insolvency of a key subcontractor, said the joint administrator in a statement.

The family-run company was founded more than 80 years ago and is involved in construction, civil engineering, and property and facilities management. It operates from more than 25 sites, many across the north and Midlands, said administrators.

Administrators have been appointed to Clugston Group Limited, Clugston Construction Limited and Clugston Services Limited, said KPMG. 

Clugston Distribution Services Limited and Clugston Estates Limited are not affected and continue to trade under the control of their directors.

James Clark, a joint administrator, said: "The directors of the business have worked tirelessly trying to rescue the group and have pursued discussions with a key stakeholder about a potential rescue deal. Unfortunately, it has not been possible to obtain the funding required and, as a result, the directors concluded they needed to appoint administrators to protect the value of business."

The administrators said it was to keep some divisions trading with 262 retained staff and they would try to sell new contracts.

In a strong show of support, the Civil Engineering Contractors Association (CECA) has offered to try to place any affected workers with new employers. CECA says it will also use its wider regional networks to seek employment for those working for Clugston across the rest of the country.

CECA Yorkshire & the Humber director Mark Roper said: “It is a sad day for the region to see the failure of this well-known firm. In the run up to Christmas we want to do everything that we can to help those affected find new employment, hopefully with companies in their area.”

If you are an affected worker, or an employer looking to recruit, please email clugstonemployees@ceca-yorks.co.uk