A construction firm forced into administration – putting hundreds of jobs at risk – has blamed the Royal Bank of Scotland because the bank refused to release funds to cover cashflow problems.
Shropshire-based Wrekin Construction Group, which employs 600 staff, said it had £40m worth of orders, but because RBS would not lend money to the firm it had collapsed, it said, leading to the likely redundancies of 500 staff.
A statement from Wrekin said: “As a result of this administration, the taxpayer may have to make redundancy payments of £2.5m and there will be the ongoing unemployment costs for more than 500 employees.”
Wrekin added it had it had an overdraft facility of £4.25m and was overdrawn by £2.8m. Winding-up petitions, however, meant that the account was frozen.
It added: “All Wrekin Construction needed to keep going in a very competitive market was £2m to £3m.”