Jobs are at risk at plant hire firm Hewden after talks to find a new backer are said to have stalled, and Brexit is to blame
Hundreds of jobs were put at risk over the weekend as one of the UK’s largest plant hire firms sits on the edge of collapse.
Hewden, which hires heavy plant machinery including cranes, has struggled to keep its head above water due to a deterioration in trading conditions, but over the weekend it was revealed that the company is on the brink of collapse.
EY, a profession services firm, is expected to act as administrator for the firm. Sky News revealed an announcement about this appointment is set to be made at some point this week.
Confidence the firm would find new backers looking uncertain now
The Manchester-based company has tried to find new financial backers to save the 750 staff it employs. In a statement last month the firm had expressed its confidence it would find new investors, but talks with potential backers have seemingly not progressed.
Speaking three weeks ago, Hewden said: “Hewden has been impacted by market uncertainty following the vote to leave the EU. The vote has adversely affected a number of large construction and capital investment projects.
“The company is in constructive dialogue with stakeholders to resolve the situation in a consensual manner and is optimistic that a positive solution will be found.
“The company is working with its advisers Deloitte to reach agreement with lenders on an extension of its debt facilities, whilst also testing market appetite for a sale of the business.”
Hewden has some £200m of outstanding borrowings and lost more than £16m in 2014, according to its financial records. The firm, which was bought by Sun Capital Partners in 2010, is now seeking a last minute investor before it heads into administration.
