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'We knew they were in trouble as they weren't paying out': Fears for companies owed thousands by Shaylor

By Richard Guttridge | Aldridge | Business | Published:

Company bosses say they are owed thousands of pounds by construction group Shaylor, which has gone into administration with the loss of 200 jobs.

The headquarters of the Shaylor Group in Stubbers Green, Aldridge

Dozens of sub-contractors and suppliers are thought to be owed money by the Aldridge-based firm which was working on Wolverhampton's Civic Hall revamp and other large projects.

It has been reported the total amount owed could be as much as £17 million and there are now fears smaller businesses will be impacted by the loss of income.

Around 200 staff were made redundant when the company ceased trading on Friday, with administrators FRP Advisory LLP appointed to work on the closure of the group.

Shaylor was carrying out work on Wolverhampton Civic Hall

Multiple businesses have claimed payments started to get further apart or dry up completely earlier this year, with owners left furious over the loss of earnings and what it could mean for their businesses.

West Midlands Police has also confirmed they were called to Shaylor's head office last Thursday to "disorder" following reports someone owed money turned up at the site.

'Everyone knew they were in trouble'

One business owner said his electrical company, based in Staffordshire, is owed £100,000.

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He said he cut ties with Shaylor four months ago as "everybody knew they were in trouble".

He said: "Lots of people have lost a lot of money. We have worked with them for years but we pulled away about four months ago.

"Everybody knew they were in trouble because they weren't paying out.

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"There is a mechanical company that is going to go bust. There is going to be loads."

Lee Ullah, who runs Beechwood Fire Ltd in Kings Heath, Birmingham, which supplies fire extinguishers and alarms, said he was owed £5,500.

He said: "I have been chasing up money over the last six months. Two weeks ago they were still asking to do jobs.

"I had heard rumours they were struggling but we have always done work with them without any trouble.

"They said it was all in hand. The last job cost £1,500."

He added: "I can't really take £5,500 hit. We're just a family-run business."

'They only paid when I lost my mind'

Meanwhile the boss of a construction firm says she was kept waiting to be paid £18,000 for work on the Emporium project in Birmingham.

She said: "Towards Christmas payments started to get further apart, and a promised three owed payments before Christmas resulted in only one being paid meaning we could only pay our subbies and not ourselves.

Shaylor Group chief executive Stephen Shaylor

"We went into talks with them and they said the matter would be resolved if we came back to them in the new year which, stupidly we did, we then received the owed payments mid-January and then nothing on the following pay run.

"We told them we couldn't work for them any longer, the situation was strangling us, we couldn't afford to put fuel in the vans.

"It was only when I lost my mind on Twitter with them that they eventually paid £12,000 in mid-April."

There are fears the revamp of the Civic Hall could suffer further delays, with Wolverhampton Council now needing to find a new contractor to complete the job.

More on this story:

Richard Guttridge

By Richard Guttridge
Investigations Editor - @RichG_star

Investigations Editor for the Express & Star.

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