A further 128 Clugston staff made redundant following administration

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Some 128 workers of Scunthorpe-based Clugston Group, which also owns Clugston Construction and the haulage business Clugston Distribution Services, have been let go after the company fell into administration last month.

On December 6, 2019, James Clark and Howard Smith of KPMG LLP were appointed Joint Administrators of Clugston Group Limited – which saw around 150 staff made redundant.

Now, the joint administrators have announced a further 128 redundancies – despite ‘interest in certain construction contracts’.

A spokesperson said: “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.”

It was confirmed on December 6, 2019 that insolvency partners with accountancy firm KPMG were formally appointed.

Published accounts on January 31, 2018 saw a 49% increase in revenue to £176 million. However this didn’t translate into profit with the group making a £500,000 loss.

This comes after Clugston Group Limited announced the retirement of Chairman John Clugston as of January 31, 2020, in November 2019.

John, who had been Chairman for over 35 years, was set to hand over the reins to David Clugston, with the appointment taking effect from February 1, 2020.

David, in the meantime, had taken up the role of Deputy Chairman.