128 Clugston staff redundant as French firm buys EfW contracts
French contractor CNIM has bought Clugston’s five energy from waste (EfW) contracts from the administrators, saving 67 jobs, but another 128 will be made redundant.
Meanwhile staff working on three facilities management contracts have also been transferred to alternative suppliers, saving another 15 jobs at Clugston Services.
Clugston called in administrators KPMG in December, after grappling with losses on its “large and complex” EfW jobs.
Initially, there were 150 redundancies, with 262 staff remaining as KPMG looked to sell valuable contracts.
Now KPMG said that while there was still interest in some of those contracts, it hadn’t been able to conclude negotiations, which resulted in the 128 redundancies.
James Clark, joint administrator from KPMG, said: “We are very pleased to have secured employment for 82 members of the Clugston workforce through a series of deals, but equally acknowledge what a difficult time it is for those employees who have had to be made redundant. I’m grateful to all Clugston staff for their professionalism, and to the Insolvency Service for dealing with statutory payments promptly.”
Another 51 employees remain as KPMG negotiate additional contract sales and deal with the affairs of the companies.