Construction News

Fri August 07 2020

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More Clugston staff let go

7 Jan The joint administrators running the affairs of failed construction group Clugston have made a further 128 employees redundant.

The latest lay-offs come after an initial 150 redundancies on Clugston’s first day of administration on 6th December.

“Whilst there remains interest in certain other construction contracts, it has not been possible to conclude notations, and so unfortunately a further 128 of Clugston’s employees have had to be made redundant,” the administrators said in an update.

As previously reported, 67 Clugston employees were taken on last month by the company’s French joint venture partner CNIM. CNIM had been working alongside Clugston on five energy-from-waste projects, where construction will continue.

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.

A further 51 employees 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.”

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