530 jobs lost at builders
Building company Wrekin Construction went into receivership today with the loss of more than 500 jobs.
Bosses blamed their bank for "a total lack of support". Shifnal-based Wrekin Group, which owns Wrekin Construction, said receivers from accountants Ernst & Young were due to arrive on site this afternoon.
Bosses told workers earlier today their company had gone into receivership and all 530 staff across the business had lost their jobs.
The company, founded in 1960, employs 120 people at its head offices in Lamledge Lane in Shifnal. It has another 140 staff based in the Midlands and the rest work at its operations in Wellingborough, Bradford and Runcorn.
Peter Greenwood, managing director of the Wrekin Group, said today the workforce was "gutted".
He said: "It's cash that we have run out of effectively and there has been a total lack of support from RBS.
"Today the bank has sent a formal demand that we repay our overdraft of £2.8 million. We cannot do that because it has frozen our accounts so the bank has appointed receivers.
"We have offered the bank shares in the business and the chairman David Unwin has offered to stand down but the bank is only intent on cash. The irony is we have £40 million of work secured this year and £4 million next year and an extra £1 million will be in the bank by the end of the week."
The company handles civil engineering, rail and construction work and regeneration projects which have included stabilising the Seven Sisters Mine in Dudley.
Today Wrekin Tory MP Mark Pritchard said he was planning to raise the company's failure in the Commons later today.
He said this afternoon: "The blame lies entirely at the steps of 10 Downing Street, given that the Government are the major shareholder in the Royal Bank of Scotland..
