Wrekin Construction Group has gone into receivership today with the immediate loss of 530 jobs. Accountants Ernst & Young are to act as receivers.
The group has run out of funds, and have had, according to managing director Peter Greenwood, no support from RBS.
“Today the bank has sent a formal demand that we repay our overdraft of £2.8 million. We cannot do that because it has frozen our accounts so the bank has appointed receivers.
"The irony is we have £40 million of work secured this year and £4 million next year and an extra £1 million will be in the bank by the end of the week.”
Banks that have been bailed out by the government should be helping construction businesses out in turn, according to the building workers' union Ucatt.
Wrekin was established in 1960, specialises in civil engineering, rail and construction work and regeneration projects, which have included stabilising the Seven Sisters Mine in Dudley.
Its head offices are situated in Lamledge Lane in Shifnal. It also has bases in Yorkshire, Northamptonshire and Cheshire.
