Big Four

Administrators appointed to Clugston group

KPMG has announced that James Clark and Howard Smith, from its restructuring practice, have been appointed joint administrators to Clugston Group Limited and Clugston Construction Limited. 

In addition to this, James Clark and Chris Pole have been appointed joint administrators to Clugston Services Limited.

Clugston Group operates from 25 sites across the North and Midlands. It has operations in  construction, civil engineering, logistics, property development and facilities management.

As the group has fallen into administration, 150 of 412 employees have been made redundant. 


KPMG said: “The businesses have suffered as a result of losses on a number of large and complex energy from waste contracts, accentuated by the insolvency of a key subcontractor.

“Despite negotiations with key stakeholders to resolve issues caused by the losses, mounting pressures on the business have caused the directors to seek the appointment of administrators.”

James Clark, joint administrator and associate partner at KPMG, said: “The directors of the business have worked tirelessly trying to rescue the group and have pursued discussions with a key stakeholder about a potential rescue deal. 

“Unfortunately, it has not been possible to obtain the funding required, and as a result, the directors concluded they needed to appoint administrators to protect the value of business.”

He added: “Our focus over the coming days will be to seek buyers for the contracts and divisions, and to liaise with those employees who have been made redundant, ensuring they are provided with the support and information they need to claim their statutory entitlements from the Redundancy Payments Office.”

The joint administrators said they would continue to trade certain divisions and are “seeking to sell valuable contracts”. The remaining 262 Clungston employees will assist with this.

Clugston Distribution Services Limited and Clugston Estates Limited are not affected by the collapse, and will continue to trade under the control of their directors.

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