Construction firm in administration

12 April 2012

A leading construction group which banks with RBS has gone into administration, putting hundreds of jobs under threat.

Shropshire-based Wrekin Construction Group, which employs up to 600 workers across the UK and hundreds more indirectly, said it has millions of pounds worth of orders.

Conservative MP Mark Pritchard (The Wrekin) said the firm was forced into administration because of the bank's "inflexibility" in releasing funds.

Mr Pritchard said: "This is a long-standing and successful company with a large order book which has been driven into administration by the inflexibility of RBS.

"Some of the blame has to fall on the doorstep of 10 Downing Street, given the Government's majority shareholding in RBS."

The MP said the administration had been caused by RBS not releasing funds for cashflow even though the firm had an order book he said was worth tens of millions of pounds.

The company was established in 1960 and its work includes motorway and highway construction, refurbishment work to canals, rivers, rail routes, rail infrastructure, sewers and drainage.

Wrekin Construction announced on Monday that it had been awarded a contract by Defence Estates for construction work at RAF Menwith Hill, due to start later this month.

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