The Clugston Group was a privately owned business involved in construction and civil engineering, property development and logistics. It was based in Scunthorpe, North Lincolnshire, England. On 5 December 2019, the group and its construction businesses filed for administration, with debts of £64m.

History

The company has its origins in the business endeavours of Leonard Clugston; in 1922, Leonard established JG Clugston Ltd, which operated as a builders’ merchants, timber, transport, and joinery.

The company's early activities centered around its pioneering work in the development and use of recycled slag into various building materials. Amongst other roles, this material was used in the construction of runways for the Royal Air Force (RAF) in the Second World War. The company undertook various civil engineering works throughout the conflict, taking on straightforwarding contracting work for the most part, such as the construction of air raid shelters and anti-glare pits as well as the erection of poles in large fields to stop enemy gliders landing as part of the anti-invasion preparations on the east coast. The firm was also involved in the construction of numerous waste-to-energy plants. It also constructed various offices and factories on behalf of various parties. It also built retail outlets and distribution centres. The company also undertook several projects of an unconventional nature.

In June 2009, the then company CEO Stephen Martin went 'undercover' at the company for the television series of Channel 4, Undercover Boss. Martin described the experience as extremely positive, and implemented a number of new measures as a result.

During the late 2000s, business activity dipped, which was attributed to the unfavourable economic consequences of the Great Recession; the company responded with 200 redundancies. Further revenue growth occurred during subsequent years.

In February 2017, Martin left to become director general of the Institute of Directors, and was replaced by Bob Vickers (formerly a director of Carillion Construction Services). Vickers resigned as CEO in June 2019; Glynn Thomas became interim CEO.

Administration

On 5 December 2019, the company filed a notice of intention to appoint administrators from KPMG, for Clugston Group Ltd, Clugston Construction Ltd and Clugston Services Ltd. The group reportedly collapsed owing over £40m (a figure later revised to £64m), and was operating from over twenty five sites primarily across the Midlands and northern England. Some 250 employees were reportedly set to lose their jobs immediately. The group's losses were attributed to a combination of problematic waste-to-energy contracts and an "acute cash flow issue" that had been exacerbated by the June 2019 failure of a key subcontractor which resulted in "significant ransom positions from the supply chain".

400 of Clugston Group's 629 strong workforce were employed in construction,

The company had grown through participation, via a partnership with France's CNIM, in the construction of numerous waste-to-energy plants; such projects had also caused financial problems for other contractors in the United Kingdom, including Costain and Interserve. CNIM took on sixty seven former employees of Clugston, who had been working on joint venture projects in the United Kingdom.

Operations

The group was organised into five divisions:

  • Construction
  • Facilities management
  • Logistics
  • Private Finance
  • Property

The administration of December 2019 mainly concerned Clugston's construction related operations. The Clugston Estates property business continued to trade until 3 February 2020, then also entered administration.

References

  • Official site
  • Official site