More than 250 staff of a nationwide plant hire group have been made redundant.
The move follows the appointment of Sam Woodward and Colin Dempster of EY’s Restructuring team as joint administrators of group companies Hewden Stuart, Hewden Properties, Interlift and The Rigging House.
In Scotland, the administration has impacted on 50 workers across six locations.
The company operates depots in Dundee and Grangemouth as well as other outlets in Glasgow, Aberdeen and Inverness.
“Management has been attempting to operationally reshape the business to focus on higher margin and quicker returning assets and services,” Mr Woodward said.
“However, this has proven challenging with the group’s capital structure and the recent trading environment.
“Management recently undertook a number of initiatives including approaching new funders and potential acquirers to recapitalise the business, but unfortunately these efforts proved unsuccessful.”
Three divisions of the group – the Access and Power generation assets, the On-site plant business and the business and assets of Interlift Limited – were sold on in a pre-pack deal to Ashtead Plant Hire Company – which trades as A-Plant – immediately following the administration appointment.
A total of 133 employees – including 27 in Scotland – will transfer across with the businesses.
Mr Woodward said: “We are assessing the optimum strategy for maximising value in the remainder of the group.
“In the meantime, we will continue to work with stakeholders to maintain service levels to customers who have assets on hire.”
EY said workers that had been made redundant are being offered appropriate advice and support in making claims from the Redundancy Payments Office for outstanding wages, as well as other payments.
A-Plant’s chief executive Sat Dhaiwal, said he was pleased with the company’s new assets.
“This acquisition significantly enhances A-Plant’s offering in the industrial sector where we have been keen to develop our capabilities for some time,” Mr Dhaiwal said.
“We are pleased to be taking over a number of important on-site depots at major petrochemical facilities and will ensure that a high level of service is maintained for all customers through the integration process.”
