Downing Street Says » Wrekin Construction

Asked about a company called Wrekin Construction that had gone into administration and had blamed RBS and the Government for the treatment of what they saw as a perfectly viable company, the PMS replied that he was aware of the story but he would not comment on the details of the individual company. It was precisely because we wanted to increase bank lending that we had taken the action that we had, including just last week ensuring that as part of the restructuring of RBS they signed up to legally binding lending commitments to increase their level of lending in order to help deal with exactly these issues.

34 Comments »

How could he not make a comment on the loss of nearly 600 jobs which means that these people will be unable to provide for their families?

Was this lack of comment due to the embarrassment of saving RBS who in turn will not help this VIABLE company? If I was in his position I would be embarrassed about bailing out a bank who will not allow this company to survive.

RBS were helped with the public’s money; money that people like these men at Wrekin Construction have paid their whole working lives in taxes. RBS should not forget that it is people like these men who have bailed them out, maybe they should return the favour.

This company should be helped before the knock on effects cause a downwards spiral in the Midlands.

My apologies if this comment appears twice.
Comment by Leigh — 11 Mar 2009 on 2:41 pm | Link
The amount of money that this Wrekin requires is a fraction of what RBS is willing to pay in bonuses and pension fees to staff at the bank who contributed to it’s down turn. If these staff are entitled to such ridiculous sums of money then why is a profitable company being refused help from a bank which made a deal to invest in British companies.

RBS is contributing to a British economic downturn and penalising others for their own mistakes.
Comment by Leigh — 11 Mar 2009 on 2:46 pm | Link
I find it incomprehensible that Wrekin Construction is being allowed to cease trading with a full order book valued at £50M because of the absurdity of the Royal Bank of Scotland (RBS) decision not to extend £2M of credit that would not only secure the jobs at Wrekin Construction but also many more jobs in both the supply chain and local community.
If we equate the £2M request to the fact that this represents approximately 2.5 years of the former RBS Chairman’s pension, then this only serves to highlight the lunacy of the decision.
RBS is now a bank owned for most part by the people of this country, and yet pays no regard to the wishes and needs of the very people underpinning this and other financial institutions.
It will cost the state far in excess of the £2M requested in unemployment benefit, lost taxes, etc. Therefore this government must be urged to support companies like Wrekin Construction that are viable, but need the short term support to ease cash flow issues.
Comment by Colin Ward — 11 Mar 2009 on 4:00 pm | Link
My husband is one of the 600 suddenly without a job as of yesterday.
I am absolutely furious that Wrekin have folded due to RBS stubborn refusal to back them and we will now be one of the millions joining the benefit parade just to keep a roof over our head (if we are entitled to any as I work full time).
Surely in the long run it will end up costing the government more money in benefits?
Companies are disappearing like on a daily basis now all due to the banks stupidity and I feel really angry that our country seems to be falling on it’s knees due to mismanagement of a few RICH individuals.
Comment by Linda — 11 Mar 2009 on 5:18 pm | Link
I am conected with a company that is owed money by wrekin and its alot i think its bad that we have not been thought about more so the goverment for allow ing it.
Comment by A subby — 11 Mar 2009 on 7:41 pm | Link
My Husband worked for Toft Johnson (which is part of the Wrekin Group) we are another family going to join the unemployed. I think it is disgusting that we have got to suffer when other people are paid rediculous bonuses and pensions.
Taxpayers money has been put into this bank and should be used to keep people in employment.The Government should step in and make the bank help these companies survive after all it’s the taxpayers money going have to help these families with unemployment benefits.
Comment by anita — 11 Mar 2009 on 7:54 pm | Link
The bank was only too happy to take tax-payers money to bail it out when it failed. It is disgusting that RBS will not help this firm to continue to operate and fulfil it’s contracts, make money and keep people in work.
These workers deserve it, they are the ones who helped this bank by working hard and paying taxes for years. It is ludicrous that Wrekin should be allowed to fold when, for the sake of a relativly small sum of meney, it could continue to trade and provide an excellent service and employment to local people.
Comment by Mrs G — 11 Mar 2009 on 9:15 pm | Link
I am discusted that yet again more families are going to suffer due to the job loses at wrekin construction. How can a large company with 50 years of trading which clearly is a profitable company be in so much debt?? It does make me wonder if the company was being run by the right people? I feel sorry for everyone who has been effected except for the owners who are probably sitting in their massions swigging bottles of champagne celebrating how they have destroyed many of peoples lives.
Comment by michelle withers — 11 Mar 2009 on 9:36 pm | Link
The goverment should step in and sort this mess out once and for all,they should also ensure that this kind of practice from RBS is not repeated. Companies like Wrekin are the backbone of this country. As for the people who manage RBS, they are like Kippers.
Two faced and gutless!!
Comment by R venn — 12 Mar 2009 on 5:36 am | Link
I am appalled that this company is allowed to suffer. Surely it falls into the SME bracket. What does Mr Brown think is going on? He has given OUR money to save a bank and then when WE need it we are not allowed assistance. However I believe call centres in another company are benefiting from OUR money as this bank(RBS) seems to think its the best place to invest OUR money! In case you hadnt realised from this email – I’m slightly miffed. Just what are we employing Mr Brown for? Isnt he supposed to have this countrys interest at heart?
Comment by S Davies — 12 Mar 2009 on 10:15 am | Link
I am appalled that this company is allowed to suffer. Surely it falls into the SME bracket. What does Mr Brown think is going on? He has given OUR money to save a bank and then when WE need it we are not allowed assistance. However I believe call centres in another country are benefiting from OUR money as this bank(RBS) seems to think its the best place to invest OUR money! In case you hadnt realised from this email – I’m slightly miffed. Just what are we employing Mr Brown for? Isnt he supposed to have this countrys interest at heart?
Comment by S Davies — 12 Mar 2009 on 10:16 am | Link
As yet another small business now looking at loosing nearly £6000.00 due to the downfall of Wrekin Group PLC.

The Government have once again used public money obtained through individuals and business tax payers to bail out banks!

I know I am only a small part of the MANY who will be affected and possibly forced into receivership due to such continuing circumstances! once again due to our Governments ideals?

Is Mr Brown prepared to bail out these other companies that are also owed money from this outragious act by RBS?(silly me, NO, they would only require a few thousand! its Banks that require Billions! to bail them out! secure their jobs! guarantee their pensions! and their terrific bonuses!).

Failure to help all other affected business’s will result in many more jobs being lost in this forever increasing circle.

The Government was very generous and promised all small business’s that worked for Government Organisations to be guaranteed payments within ten days! whilst the rest of us wait usually a minimum of now 60 days PLUS or in this case and others never! (and who pays our suppliers in the meantime?)

How can the administrators state that on the first day in receivership that no creditors would even be considered for any form of payment.

As with many other business’s we carried out the works and supplied materials in good faith? I must have mis-heard on the news that the Government were to financial aid both banks and construction companies?
Comment by Maurice Buck — 12 Mar 2009 on 1:45 pm | Link
Just more proof that the government are a bunch of liars!
Comment by Linda — 12 Mar 2009 on 5:35 pm | Link
This country is being systematically brought to its knees by a consortium of ill advised fools.

basic maths & basic account knowledge would easily of saved this company from administration, if RBS can not support a viable company, then it must not bode well for the rest of the companies that operate with them..!!
As of today i will be moving ALL my accounts in RBS & Halifax…….shutting them & moving to Abbey…

Even though the country is run my halfwits & the country has been brought to its knees, the worst thing that any Governmrnt or Bank for that matter can do is abandon the very roots on which the place is built !!!!!!!!!!!!!!!!
Comment by pete orton — 12 Mar 2009 on 6:04 pm | Link
Mandy and Gordon have pledged that they will help companies with short term cash flow problems.Now is the time for them to show their colours and assist Wrekin Construction and their dependents.
Comment by Grey Arete — 12 Mar 2009 on 9:44 pm | Link
Gordon Brown should be removed from power for the blunder by RBS that has allowed Wrekin Construction to go under. I think the PM and the RBS chairman need to explain how they cannot see beyond the end of their own over inflated noses and back a company with 50 million pounds worth of contracts, one with the MOD, a government department. After all the RBS is now financed by the law abiding tax paying citizens of this once great country, but this highlights that our so called leaders are just brainless idiots interested only in their own wallets and dragging this country to its knees. Well done Gordon Brown, now do the decent thing and STEP DOWN!!!
Comment by Adie — 12 Mar 2009 on 10:02 pm | Link
We have experienced payment problems with Wrekin for over 2 years, long before the credit crunch took effect. Representatives of Wrekin have blatantly lied to us on numerous occasions and agreements for payment were constantly reneged upon. We consider their problems to be as a direct result of poor management and “overtrading”.

When will someone stand up and take responsibility for their mistakes?

The Government wont accept responsibility for the poor regulatory framework that allowed the Financial Institutions to run amuck, the banks will not accept responsibility for reckless lending and the Board of Wrekin blame everyone but themselves for what is evidently their mess.

Welcome to blameless Britain a country to be proud of (if you’re an illegal immigrant).
Comment by A Creditor — 13 Mar 2009 on 1:13 pm | Link
I also work for a company that Wrekin construction owe money to, maybe the government should back companies like this and not the banks who obviously are keen to take tax payers money but not to keen on giving it back.
Comment by Paul Blaylock — 13 Mar 2009 on 3:28 pm | Link
I hope all those who have been slagging Gordon Brown off over Wrekin Construction will apologise when the truth comes out as it will. This was, amazingly, a reasonable decision by RBS. The blame for this lies in Shifnal – but lives in Uttoxeter.
Comment by jon ledbury — 13 Mar 2009 on 3:40 pm | Link
Surely the actions of RBS are in complete contradiction to what Gordon Brown, Peter Mandleson et al have been advocating, let companies borrow. I would have thought that this country needs construction jobs and to let a company like Wrekin go to the wall is unbelievable. One of the basic rules of economics is the multiplier effect. The loss of 600 jobs will not just be tragic for the families of those involved,but there is a multiplier which will mean that the loss of revenue earned by these families will have a knock on effect, so other companies will suffer and in all liklehood other people will also lose their jobs. As other people have mentioned the cost of paying “job seekers allowance” will be far greater than the £ 2million requested. Is this yet another example of Gordon Brown getting rid of boom and bust? As Winston Churchill said to Neville Chamberlain in 1940 “In the name of God, go!!”
Comment by Bob — 13 Mar 2009 on 3:40 pm | Link
I manage a company which was owed many thousands of pounds by wrekin construction we were promised payment each and every month for eight months and were lied to on many occasions by wrekin management . We only received the money upon serving a winding up order on wrekin. It is quite clear to me that this is not the fault of RBS but the fault of the wrekin construction management I dont blame RBS for not lending these people any more money
Comment by Ex wrekin contractor — 13 Mar 2009 on 4:00 pm | Link
I agree with Ex wrekin contractor. David Unwin should be the one answering questions. There is much more to come out on this one!!
Comment by Jon Ledbury — 13 Mar 2009 on 4:12 pm | Link
No Comment, No Comment, it is all we ever hear.

It’s about time Mr Brown started to wake up and smell the coffee. Trying to help the British public yet council tax is on the rise again, 600 jobs gone because of bank inflexibility.

Unfortunately, decent hardworking people fail to propser in the UK.
Comment by Fozzy Bear — 13 Mar 2009 on 6:30 pm | Link
Wrekin’s new owners are playing a PR exercise by blaming RBS and the government. As someone who lives near Wrekin’s HQ I knew about the troubles months before they became public and was warned about the administration move three days before it happened. Perhaps if Dave Unwin had sold his £11 million “Tanzanian gemstone” before the troubles started there would have been no need for the present situation to develop. The truth will be revealed eventually and it won’t make nice bedtime reading. Indeed, some who have been quick to criticise the bank and government could be left with red faces.

PS: It’s surprising how quickly machinery can disappear when the Administrators hit town!
Comment by Ian — 13 Mar 2009 on 6:33 pm | Link
Would anybody with a RBS account please close it and open a new one
Comment by benny — 13 Mar 2009 on 7:18 pm | Link
Well said Ian. Heading for Nigeria I heard.

Funny how Mark Pritchard and the Shropshire Star have dropped the story now that the truth is coming out.

In fact, it is like Animal Farm in the Shropshire Star these days. They never reported that their own workers were balloting on strike action.
Comment by Jon Ledbury — 16 Mar 2009 on 3:22 pm | Link
I really do feel for all those who are going to suffer due to Wrekin going down. I myself am currently owed over £25k by another company within the construction industry that appears to be in trouble. This is not intended to support that bunch of muppets we currently have in power at Westminster.
The problems at Wrekin however have existed for quite a long time and are not solely due to the current financial climate. They have an awful reputation for not paying their suppliers and subbies and the fact that they have over 40 CCJ’s proves this.
Comment by paul — 16 Mar 2009 on 8:41 pm | Link
They have never paid on time, they lie and backtrack and never follow the sub-contract. They never did get a cash injection, just a gem stone injection. Why did they not sell the gem stone and then pay off their creditors, including the bank? I imagine the gem stone will be nowhere to be seen when the administrators look for it The person that “lent” it to them will have already taken it back via the preferential shares.

Its tragic for the staff there who have lost their jobs and those along the supply chain who will also suffer. The blame lies fully at the feet of the directors who took far to many risks and treated their subbies like dirt. As a nation we don’t want our banks to take on more toxic debt, that’s what got them into trouble in the first place. You can’t expect them to bail out a company as mis-managed as Wrekin, harsh as it may sound we as a country just can’t afford to do it.
Comment by Dave — 17 Mar 2009 on 9:26 am | Link
Yes, it’s remarkable how little the Shropshire Star has to say about this story now that the truth is leaking out. Maybe that’s because the owners of these various “Great British Businesses” drink from the same trough?

Well, it’s welcome to to Rip-off Britannia for those who haven’t seen it before. Of course we told you when Thatcher started this barbaric “sell-off” of everything that you and I (the citizens and tax-payers) once owned. It started with the mines, and it’s ending with the banks. The Free Market they called it. Of course, those who suffer won’t be the ex-bankers and ex-directors of these failed companies – it will be the folk on the ground (and underground) who have done the work that suffer.

But of course….I’m just a mad rambling socialist… didn’t I die out years ago?
Comment by peter naylor — 17 Mar 2009 on 7:41 pm | Link
im an unemployed wrekin ganger, this was coming for months. we couldnt pay any of the sub-contractors and all the mangerment did was lie and lie to them. it was upsetting in the end, people we had worked with for years were treat like sh$@. i think the new owned ran it into ground, all the machines vanished very quickly the day before it all happened!!
Comment by richard — 17 Mar 2009 on 9:04 pm | Link
I understand the Frains (the previous owners of the company) have made absolutely NO money from selling out to the Tamar group. Old Tom who founded the company back in 1960 is, I am told, absolutely distraught at what has happened.

Wrekin always had a direct labour workforce and as such was responsible for its taxation, National Insurance, health & safety and training etc., which all added to its costs. This meant it was always at a disadvantage when quoting for contracts compared to other companies which used sub-contractors. Old Tom believed quality would win him work instead of cheapness. Unfortunately in today’s market that proved not to be the case and he was forced two years ago, much against his will, to seek a “White Knight”.

Hence “Digger Dave” arrived promising to inject £11 million to restore the company’s fortunes. The Frain family accepted an offer to sell what they thought was a minority interest, but “other” companies already had a smaller minority interest and the two combined proved a majority. Thus ended the Frain’s ownership and the present situation. The family itself will only say it is saddened by what has happened and particularly regrets the situation that its former workers find themselves in. However, a neighbour who is close to Old Tom and his son says they have taken it particularly badly.

And now we know where “Digger Dave’s” £11 million injection came from, even though his other company, Tamar, which sold the fabled gem to Wrekin apparently only valued it at £300k.
Comment by Ian — 17 Mar 2009 on 11:33 pm | Link
It is sad to see all the people believing the mock story Unwin&co has sold to the press. Its an absolute fass. They stripped the company bear of all its assets and cash and then dropped Wrekin from their holding company Tamar, also removing themselves as directors shortly before the big bang. I hope all the mystery will be brought into the public domain so that the hard working and dedicated “junior” management of the Wrekin can get their dignity back. It’s the top 3 fish who needs to be fried for this terrible ordeal. The Unwin&co had an alteria motive from the minute the set their robbing feet through the doors in June 2007.
May we all see justice and Unwin in jail for his pilfering and miss-management of what was a great company.
Comment by Scud — 19 Mar 2009 on 10:02 am | Link
as an ex employee of wrekin i hope all the suppliers and sub contractors understand it was not the administration staff to blame for none payment of accounts,payments were prepared cheques raised ready to be signed only to be told there was no cash to be had

we have suffered greatly at the hands of this regime sleepless nights, verbal abuse and having to tell lies to people we have dealt with and formed good working friendships with for lots of years it has not been an easy ride under the unwin banner believe me

to stand in the window and watch low loader after lowloader disappear down lamledge lane loaded with my severance pay holiday pay and redundancy payment showed me where mr unwins loyalty’s lay to his bank balance

perhaps this is one for the serious fraud squad as i’m sure one or two people have done very nicely thank you at the expense of many
Comment by ex wrekin employee — 20 Mar 2009 on 9:27 pm | Link
With reference to comment number 33 by an ex-employee I totally sympathise with you as the administration staff at Wrekin’s had to take the brunt of the anger from suppliers & subbies demanding payment.

I do hope you find another post soon and wish you luck trying to get money out of Wrekin!

It’s a sad state of affairs when the true workers in the company are the ones that are really suffering.

We are still waiting for their van to be collected from our house! Maybe it’s not worth enough money to them.
Comment by Linda — 23 Mar 2009 on 1:14 pm | Link

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» Tuesday, March 10, 2009

Wrekin Construction

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