Weldon Plant enters administration blaming RBS

Grant Prior 11 years ago
Share

Northamptonshire civil engineer Weldon Plant has gone into administration putting 113 jobs at risk.

Weldon Plant in Corby said its overdraft with Royal Bank of Scotland was cut from £3.15m to £2.2m “without justification”.

Weldon’s chairman, Peter Webb told the BBC: “This decision has not been taken lightly. We know how many individuals and families will be affected.”

RBS said it was working with the firm to resolve the issue.

A bank spokesperson said: “We are making a sustained effort to work with Weldon Plant Ltd to address its current issues.”

The MP for Corby and East Northamptonshire, Louise Bagshawe, has written on behalf of Weldon to RBS.

She asked why a state-owned bank was not lending to a “chiefly successful business”.

She said in the letter: “We are at a crucial stage of the recovery in the UK economy, and we cannot afford to rush the closure of companies such as Weldon Ltd, which employs significant numbers, and delivers untold benefits to the local economy and community.”

The firm’s workers were called off site at a housing scheme in Lincoln Way, the Rockingham Triangle stadium and street works at Oakley Vale in Corby this week.

Officers at Corby Council spent yesterday considering how best to help the company and its various subcontractors.

Chief executive of Corby Council Chris Mallender said: “This is a dreadfully worrying time for Weldon Plant, its employees and its many subcontractors.

“We believe it is an inherently strong business that was recovering well from recession but is now jeopardised by what appears to be irresponsible bank lending practices from a publicly-owned bank.

“This is not the first time a business with significant public work contracts appears to have been forced to the brink of closure.”

Latest news

Structural steel price jumps another £50 a tonne

British Steel blames New Year's price hike on continuing high product costs
2 days ago

Green light for Birmingham Paradise landmark hotel

17-storey hotel will be the 'cornerstone' of Phase 2
2 days ago

Enabling works start at £400m Manchester First Street

Downing to start main construction in March of three resi buildings rising up to 45 storeys
2 days ago

Former BAM Nuttall chief to join Murphy

Adrian Savory to start new role as director of Major Projects division next month
2 days ago

Bouygues set for London Tustin Estate 700-home rebuild

Phased building programme to start towards the end of the year
2 days ago

Safety horror show on housing site leads to director ban

Court hears contractor ignored multiple prohibition and improvement notices
2 days ago

JV North calls up local firms for £250m new home works

Framework for home building projects worth up to £2m
2 days ago

Kier more than halves debts to below £200m

Kier chief reports steady progress in first six months of trading
3 days ago

Barhale boosts funds as it looks to rebuild turnover

Contractor confident as water companies ramp-up spending plans
3 days ago

HS2 labour agency looks to float on AIM

£23m turnover labour supply business looks to raise funds for expansion
3 days ago

Kane scores £29m M&E deal with Willmott Dixon

Off site works to play crucial role in major London estate contract
3 days ago

Graham secures third Audley retirement village

Work starts on Audley Villages site at Scarcroft, West Yorkshire.
3 days ago

Keltbray wins first deal for former nmcn infrastructure arm

Hull waste processing contract for rescued division
4 days ago

50 firms win £750m decarbonisation framework

Fusion21 framework to target 'whole building' works on homes and schools
4 days ago

Balfour Beatty UK construction MD to step down

Tom Edgcumbe to depart after just over a year as MD construction services in England and Wales
4 days ago

Crest Nicholson trebles cladding retrofit provisions to £43m

House builder revises building safety retrofit costs in face of new Government guidance
4 days ago

BAM bags £110m refurb of iconic Covent Garden tower

Landmark Seifert-designed 15-storey Space House to get two extra floors
4 days ago

Winvic to start UK’s largest speculative shed

Ellesmere Port warehouse understood to be worth around £80m
4 days ago

Kier signs deal for £169m Luton hospital revamp

Main construction work to start this month and last until 2024
4 days ago

Willmott Dixon nabs £30m Kirklees police HQ

Work to start within next few weeks on regional police HQ
4 days ago

Kier reported to be in talks to buy Tilbury Douglas

Talks reported to be at an advanced stage between both boards
5 days ago

Finance sealed for next-generation London office job

Goldman Sachs takes stake in London Bridge office project
5 days ago

John F Hunt starts giant clean-up on £110m Walsall site

Land remediation work at contaminated site will take two years
5 days ago

Build to rent boom lifts Watkin Jones profit to £52m

Surging build to rent market lifts development pipeline to £1.8 billion
5 days ago

HS2 awards £310m station lifts and escalators deal

TK Elevator signs 160 lifts and 130 escalators deal for four stations
6 days ago

Robot cutter set to revolutionise paving jobs for Eurovia

Automated system will spell end for noisy slab cutting on busy sites
6 days ago

First mass built carbon negative homes get underway

St Modwen first volume developer to build affordable carbon-negative homes
6 days ago

GMI Construction names new CEO

Lee Powell takes helm as CEO at GMI Construction in growth push
6 days ago

514-home London scheme clears final hurdle

Inland Homes declares victory after three-year planning battle over Hillingdon Master Brewer site
6 days ago

Henry Construction wins £30m Clarion housing scheme

Ravensbury estate regeneration in Mitcham is Henry's first project for Clarion
6 days ago

Contractor services