Dunne bosses blame collapse on bankers

Grant Prior 8 years ago
Share

The collapse of the Dunne Group is being blamed on bankers pulling a credit line for the concrete specialist at the eleventh hour.

Dunne ceased trading on Tuesday with the loss of 524 jobs.

Sources inside the failed firm contacted the Enquirer to reveal what happened in the final hours of the firm as it struggled for survival.

The source said Dunne received £4m in outstanding payments on Friday which was then due to go out to subcontractors and suppliers.

The insider said Dunned was “working within banking facilities” when it is claimed Santander suddenly reduced the company’s credit limit by £4m.

The source said: “After unsuccessful discussions to reinstate the limits om Monday Santander retracted all facilities . They confirmed this to Dunne’s solicitors overnight

“Once this came to light from 5 am on Tuesday senior Dunne directors personally  addressed staff , personnel , subcontractors and clients in London , Scotland and throughout UK telling them that they could not ask people to work when there was no guarantee they would be paid.”

Administrator FRP Advisory closed Dunne down yesterday

The source claimed that Dunne’s “balance sheet far outweighs any remaining bank debt .”

The insider also claimed that the company was heading for a £6m profit.

FRP said Dunne “faced substantial trading losses on some contracts, leading to severe cash flow pressures.

It added: “Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.”

A Santander spokesperson said: “We regret any situation where one of our customers feels the need to appoint administrators.

“In this case,  Dunne Group had been making substantial losses and despite having provided increased facilities on numerous occasions to keep the business trading, the company was insolvent.

“Therefore the management instructed the appointment of administrators earlier this week”

 

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
3 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
2 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
2 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
2 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
3 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
3 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
3 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
3 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
3 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
3 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
3 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
3 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
4 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
4 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
4 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
4 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
4 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
4 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
5 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
5 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
5 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
5 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
5 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
5 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
5 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
5 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
5 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
5 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
6 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
6 days ago

Contractor services