Scunthorpe

More than 150 jobs saved at Scunthorpe-based Clugston Group

The jobs of 153 employees have been saved at Scunthorpe-based Clugston Group Limited.

It comes after the loss of 150 jobs when the company fell into administration.

The joint administrators of Clugston Group Limited, James Clark and Howard Smith of KPMG LLP, agreed a sale of the share capital of Clugston Distribution Services Limited.

Clugston Distribution Services Limited, 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 that Clugston Distribution Services continues to trade as a standalone entity. It also preserves value in the supply chain and secures the jobs of 153 Scunthorpe-based employees.

James Clark, Joint Administrator of Clugston Group Limited, 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.

It was previously confirmed in December that 150 of the companies’ 412 employees had been made redundant by the move.

As previously reported, a further 128 were set to be lost 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 managed to retain employment through a series of deals.

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


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