Wrekin firm collapse anger grows
Wednesday 11th March 2009, 10:55AM GMT.
Anger was growing today over how major Shropshire building firm Wrekin Construction was allowed to go into administration.
Administrators Ernst & Young were officially appointed today and the firm’s 530 workers were waiting to hear their fate.
Royal Bank of Scotland said it did all it could to help the firm with its financial difficulties. But criticism was growing that RBS and Government ministers could have done more to save the Shifnal-based firm.
Wrekin MP Mark Pritchard said he told Business Secretary Peter Mandelson Wrekin was having short-term financial difficulty and needed help from RBS in December 2008, but claimed nothing was done.
RBS said the business was “unsustainable due to the extent of creditor pressure”, but the decision was not taken “lightly”.
Ernst & Young said the business has run into financial difficulties as a direct result of the economic downturn, despite a successful track record of winning a number of new contracts worth a significant value.
It said the company had been subject to a number of winding up petitions, which had led to the appointment of the administrators.
It also emerged today that Wrekin Group chairman David Unwin telephoned creditors personally to warn them of the impending difficulties.
Bedfordshire-based Ken Leatherway was sub-contracted by Wrekin on an asbestos-removal contract, and is owed £42,000. He is still owed £12,000 from a contract in 2008.
Today his partner Nicola Clark praised the “decency” of Mr Unwin and said the Government should have put more pressure on RBS.
“Wrekin was a viable company and because the bank accounts were frozen it couldn’t access the funds,” she said. “It is outrageous this has been allowed to happen, that established companies like Wrekin are allowed to go to the wall.
“The Government should realise the human cost.”
* John Lewis Partnership today revealed annual profits fell by more than £100 million to £279.6 million in the year to January 31.
By Kirsty Smallman and Business Editor Amy Bould
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That is RBS for you, if you owe them they are on your case 24/7 but when you need their help, bye bye
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What is our so called Government doing to help???
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As a former Wrekin employee it is sad to see a once prominent Local company shut it’s doors, especially after 40 years in the business being built from the ground up by a man with just a wheelbarrow and spade to what it was.
Would this have happened if the Frains sold the business? who knows?
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If the tax payers money is being used to save the banks why not use it to save a honest, loyal, major company in Shropshire?
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not on, they got a bail out now bail out sme’s
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I don’t often agree with Y Mab, but on this occasion 100%… Somebody at the bank should be available to explain everything.
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so what have rbs done with their handouts??
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I reckon that ther are people in the government and the banking industry who need to answer questions regarding the bailout of RBS and the current local emlpoyment situation regarding Wrekin construction , one rule for the workers , one rule for the bankers , who gets the best deal ?who gives a monkey’s about what the local people get as long as the bankers pension is intact !!
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It’s exactly the same as what happened to Woolworths. Binned because some little jobsworth in the bank won’t ease them over a relatively small cashflow problem. In Woolies’ case they couldn’t see what Wollies did that couldn’t be done by a supermarket. Now they can’t see why we need Wrekin when we already have Bsrrats etc. Sack the bankers, I say.
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Both the Government and the banks that have had a massive handout need to start doing some explaining. The banks have been exposed for the unprincipled, unethical shysters and shylocks that they are and it has taken an incompetent and useless Government to do it.
Barclays – which has not had a handout – but there are still no excuses, has just reduced the interest on my “rainy day” account from £50 a month to £2.15 a month which brings it down to something like .05%.
I have just had a letter from Barclaycard, thanking me for my valued custom and they are pleased to advise me that the interest rate on purchases has been reduced from 17.9% to 14.3%.
They hope that I will avail myself of this exorbitant rate by making more use of my Barclaycard and remain with them for many more years. Want to work out the different interest rates for savers and borrowers with Barclays. Criminal.
These banks need sorting out good and proper but all Barclays are doing is exploiting the lack of regulation brought about by Gordon Brown when he brought in the FSA.
What a shocking situation and the Government does absolutely nothing except let good firms go to the wall.
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As a retired building worker and later small business owner
I feel very sorry for all involved and hope that somebody steps in at the twelve hour. To the banks and government i feel there is only one way to show disapproval ….Walk past RBS and at the next election vote accordingly.
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sue the bank
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im turning green, dont get me angrey!
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Whilst sympathising with the plight of the workforce who have lost their livelihoods can I suggest that before simplistically laying all the blame at the door of RBS we wait for the full facts to see the light of day. I believe, reading between the lines, that a very different picture from the one of “short term cash flow problems” widely bandied about will emerge in due course. Companies are run by their directors and bankers can only respond to their achievements – or lack of them. There does come a time when throwing good money after bad is not justifiable.
As far as interest rates on savings are concerned perhaps the question should be posed instead to the clown in Downing Street. With his qualifications I was surprised not to see him as the star performer tonight on Comic Relief.
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Labour isnt working, time for a change, lets get our new Tory leader in who will cut your taxes and make you all better off
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Tory Boy, can you tell us how your new Tory leader proposes to pay for all these tax cuts you are proposing?
No didnt think so.
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lets all pull our money out of RBS in protest!
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Well, one thing he will not do Ron, is borrow, borrow and borrow more, neither will he pour non-existent money into the public services which they are finding now has to be paid back by laying off staff. Neither will he allow banks to run riot, neither will he tax us to the hilt on almost everything that can be thought of (remember, this Government has taxed us higher than any other for many years).
As for Tory tax cuts, there is nothing definite in the offing if/when they gain power, this mess has to be sorted out before any tax cuts and that will take a long time. The Tories are the party of “low tax” by philosophy, that does not mean to say that we can expect them to give immediate tax cuts in an irresponsible way.
One thing is very, very , very certain, in the event that the Tories get in, we will be on the road to curing this problem, not making it worse like Clown is doing – and Cameron will not be riding the “popularity” stakes as Clown is doing neither. Only a mad man would vote/support Labour as things now stand but I have mixed feelings on WHO SHOULD get in.
One can argue and say that Clown caused this mess, he should be made to clear it up.
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