Interest has been expressed in the collapsed Clugston Group, administrator KPMG has confirmed.
The Scunthorpe construction giant called in the recovery and insolvency specialist last week, with 150 jobs lost immediately.
Losses at the 82-year-old firm have been blamed on a number of large and complex energy from waste contracts, “accentuated by the insolvency of a key sub contractor”.
The huge schemes, around the country, were valued up to £90 million.
Despite negotiations with key stakeholders to resolve issues, mounting pressures led the directors to bring the administrators in on Friday.
Director David Clugston had told how the management team was dong all it could to protect jobs on key projects, and protect creditors. He is due to take over as chairman of the privately-owned business from his father John in the new year, marking a third generation.
James Clark and Howard Smith from KPMG’s restructuring practice were appointed to oversee the group, with Mr Clark and Chris Pole overseeing Clugston Services Ltd.
Clugston Distribution Services Ltd and Clugston Estates Limited, the tanker and property management arms, are not affected by the administration, and are continuing to trade under the control of the directors.
Most Read
The potential for partners in construction projects to take on some of the 262 remaining staff has also been raised.
In an update on the situation, a spokesperson for KPMG said: “Since the appointment, there has been initial contact from a number of interested parties and discussions are progressing.
“In terms of staff transferring to some partner companies on larger projects, this will depend on the outcome of ongoing discussions.”
A second successive annual loss had been anticipated for what had been a £176 million turnover business in 2017, with the St Vincent House company late filing 2018’s accounts following the parting of company with its chief executive, Bob Vickers.
He spent just two years at the helm, having arrived from national construction and services firm Carillion – which was a high profile national collapse – in the intervening year.
Clugston Group had made a £500,000 loss in 2017, against the record £176 million figure – with the Construction division accounting for £157 million of the business. It had underlined a cash balance of £30 million and a debt-free position.
The previous year has seen a £1.1 million profit on £118.2 million.
Latest Scunthorpe business news:
How to contact David Laister at Business Live
Business Live's Humber coverage is brought to you by David Laister.
You can follow David on Twitter @davelaister and on Linkedin by .
To get in touch call 01472 806972 or email david.laister@reachplc.com.
Follow @HumberBizEd and @businesslive on Twitter and sign up for the daily newsletter at the top of the article