Clugston Group

The Clugston Group is a privately owned business involved in construction and civil engineering, property development and logistics. The group is based in Scunthorpe, North Lincolnshire in England. On 5 December 2019 the Group and its construction businesses filed for administration.

Clugston Group
Private
IndustryConstruction
Founded1937
Defunct2019
HeadquartersScunthorpe, Lincolnshire, England, United Kingdom
Key people
John Clugston (chairman)
Glynn Thomas (interim CEO)[1]
Revenuecirca £175 million p.a.
Number of employees
629[2]
Websitewww.clugston.co.uk

History

The company was founded by Leonard Clugston in 1937 in Lincolnshire as Clugston Cawood. Initially, it pioneered the development and use of recycled blast furnace slag from Scunthorpe’s iron and steel plants. This was used in the construction of runways for the RAF in the Second World War, and led the company into civil engineering, road construction and the building of sea defences on the east coast.[3]

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

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.[1]

Administration

On 5 December 2019 the company filed a notice of intention to appoint administrators from KPMG,[5] for Clugston Group Ltd, Clugston Construction Ltd and Clugston Services Ltd.[6] The group reportedly collapsed owing over £40m, and was operating from over 25 sites primarily across the Midlands and northern England.[7] Some 250 employees were reportedly set to lose their jobs immediately;[8] 400 of Clugston 629-strong workforce were employed in construction,[2] and, on 9 December, 150 were reported to have been made redundant.[6]

The company had grown through participation (in joint ventures with France's CNIM) in construction of energy-from-waste plants; EfW projects had also caused financial problems for other UK contractors including Costain and Interserve.[9] CNIM took on 67 former Clugston employees who had been working on joint venture projects in the UK.[10]

Operations

The group was organised into five divisions:[11]

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

The December 2019 administration mainly concerned Clugston's construction-related operations; Clugston Distribution Services and the Clugston Estates property business continued to trade.[7]

References

  1. "Clugston CEO moves on". The Construction Index. 8 July 2019. Retrieved 8 July 2019.
  2. Aaron, Morby (6 December 2019). "Contractors rally to help Clugston staff facing the axe". Construction Enquirer. Retrieved 6 December 2019.
  3. "Profile: Steve Radcliffe". Yorkshire Post. 13 March 2012. Retrieved 4 February 2018.
  4. Stephen Martin undercover at Clugston Group Archived 2012-07-07 at Archive.today
  5. Morby, Aaron (5 December 2019). "Clugston files for administration". Construction Enquirer. Retrieved 6 December 2019.
  6. "Administrators lay off 150 at Clugston". The Construction Index. 9 December 2019. Retrieved 9 December 2019.
  7. Morby, Aaron (9 December 2019). "Clugston debt rumoured at over £40m". Construction Enquirer. Retrieved 9 December 2019.
  8. Laister, David (5 December 2019). "Clugston Construction collapses with hundreds of staff facing redundancy before Christmas". Grimsby Live. Retrieved 6 December 2019.
  9. "Clugston falls into administration". The Construction Index. 6 December 2019. Retrieved 6 December 2019.
  10. "Clugston staff taken on by French JV partner". The Construction Index. 19 December 2019. Retrieved 19 December 2019.
  11. Clugston: Structure Archived 2 December 2008 at the Wayback Machine


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