Scottish contractor gone wallop............

[Stock]

Hope this doesn't affect anyone here....................


700 jobs at risk as Scottish civils firm ceases trading

Aaron Morby | Tue 10th January | 23:59
Scottish civil engineering contractor W J Harte has ceased trading while waiting for an administrator to be appointed.
Work has stopped at 100 sites around Scotland, where they carry out groundwork and civil engineering for house builders.
Company directors are reported to have already left the firm, which is based in Bothwell, Lanarkshire, after telling members of the 700-strong workforce that there were severe cashflow problems.
A company source said: “We have currently ceased trading and are waiting for the banks to appoint an administrator.
“There is nothing more to say and a formal statement will be issued shortly”
The firm’s problems are a blow to the Scottish civil engineering industry, which has seen several contractors collapse over the last two years, but few of the size of Harte, which turned over more than £100m.
Construction union UCATT said it has “received a substantial number of calls” from workers concerned about the future of the firm.
The company has being carrying out work for house builders in Scotland for more than 40 years and is understood to have lost the support of its bankers.
Local MPs have called for meetings with Harte directors but have been told nobody was available.
Ucatt regional secretary Harry Frew said: “It’s extremely disappointing to hear that WJ Harte is facing such difficulties threatening hundreds of jobs.
“We hope that a buyer can be found and jobs preserved. UCATT is seeking a meeting with the administrators to establish what the future holds for our members.
“The impact of these potential job losses across central Scotland will be a major blow to workers and their families. It is imperative that everything is done to safeguard these valuable construction jobs.”

[Muz]

Ive dealt with Harte over many years (bout 20) They were nothing but trouble in the early days subbie bashed and wouldnt pay anyone for months. Latterly they got turned around and became a good customer of mine (and many like me) and paid up pretty much on time. They carried out a huge amount of works around these parts of all shapes and sizes. Latterly though, they bought a lot of their own kit, like many, and seem that they needed to hire in a lot less. They began to get quite slow in their payments again because they got affected by some big hits, on other contractors who went out of business to them, and ultimately it became unsustainable for them.

One thing I noticed in the story was that half the board of directors had already left before the bank decided to pull the plug, which is why "none were avialable" for meetings with local mp's at the critical hour .. the question is .... did they jump or were they pushed ?

Thankfully for once .. I was not involved in this one.. cant speak for the rest of our contingent though ?

[JD450A]

Hmm yea.

Somewhere I used to work (Guess) Has pushed it's two directors. All the Polish gone, My Forklifts gone, New Teletruk gone. 24hr working down to 8hrs each day if your lucky....

[Muz]

Well in these situations, sometimes the banks can get a bit too pushy, and start calling the shots, and I can see why I suppose, in some ways, BUT, they wont take the long term view just when its often neccessary,.. Ive had a similar situation a good few years ago, and it wasnt that my company was in trouble, more just that the banks had a manager that tried to push his nose in where it wasnt warranted, and to which I took great exception.

He would do this by way of insisting that I had to convert short term overdraft to loans to get it cleared off, but ofcourse this was to deprive the company of its vital cash flow just when it needed it (and this was a business that was profitable & fully secured aswell) and there was no need for such actions.

As much as I argued , it was to no avail, suddenly I was not in control of my own business, and this guys actions cost me 2 to 3 years of development becuase of his insistance, so I know all to well how banks can make a hash of things, as as we've all seen now, you only have to look at RBS and Fred Goodwin to see how banks really can make a hash of things

[Wazza]

An old saying here is that the Banks will loan you an umbrella until it starts to rain ,then they take it away ......

[Dan]

Sadly I know a few who will be hit but luckily I will escape ........ had heard that some of the bigger guys were offered 50p for the debt owed take it or leave it, and some didnt want to know, even Tarmac said 'yes' apparently , and dont quote me but somone said that meant theyed get back £1m only