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Wrekin failure ‘will hit others’
Tuesday 17th March 2009, 11:30AM GMT.
The collapse of building firm Wrekin Construction is almost certain to push some other companies out of business, a debt recovery specialist warned today.Scores of angry former Wrekin employees travelled in convoy to the firm’s headquarters at Shifnal, near Wolverhampton, yesterday to protest at the loss of more than 500 jobs.
When the company went into administration last week bosses blamed their bank, the Royal Bank of Scotland, for “a total lack of support” despite the firm having secured tens of millions of pounds in future contracts.
The bank had been presented with winding-up petitions from unpaid creditors represented by Darren Davoile, a debt recovery manager with insolvency law specialists Coltman Warner Cranston, of Coventry.
Mr Davoile said he had represented 20 creditors owed £1.3m.
“The biggest debt was £380,000, but the average was around £40,000-£50,000,” he said. “For the bigger firms involved, it will hurt but they will be able to cope. But for some of the smaller creditors, it could push them over the edge. There are companies that will not survive the failure of Wrekin.”
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