Clugston Construction collapses as staff face job losses before Christmas

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Insolvency practitioners from KPMG are expected to take over Clugston Construction’s affairs as the firm reveals to staff it is facing administration

According to the Grimsby Telegraph KPMG officials are expected at Clugston Construction’s base in Scunthorpe today (6 December).

More than 250 Clugston employees face losing their jobs just before Christmas, reports say.

The company’s latest accounts, for the year to January 2018, reveal 49% year-on-year growth to £176m turnover but the company made a pre-tax loss of £469,000.

Just weeks ago second-generation chairman, John Clugston, announced he was stepping down, with third-generation David Clugston poised to take control.

Chief executive Bob Vickers also left the firm this summer after two years in the job – he was formerly a director of Carillion.

Following Vickers departure, Glynn Thomas was brought in as interim chief executive. Thomas is thought to have set out a plan to change the fortune of Clugston.

The history of Clugston Construction

The Clugston Group is a privately owned group of companies founded over 80 years ago in North Lincolnshire by LG Clugston, the father of the present chairman, John Clugston.

In 1937 led by the present chairman’s father, Clugston Cawood Ltd was incorporated and pioneered the development and use of recycled blast furnace slag from Scunthorpe’s iron and steel plants. This led the company into civil engineering, road construction and sea defences on the east coast.

In 2007 Clugston Group restructured so that the trading activities of Clugston Construction and Clugston Distribution previously operating as trading names of Clugston Limited, became established as limited companies in their own right.

Clugston had recently been awarded a £5.9m contract to refurbish Wellington House in Leeds. It is not yet known what will happen with the company’s current/on-going construction projects.

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