Molson Group enters administration with 203 jobs lost across the UK
Molson Group Limited, the Bristol dealer in new and used construction machinery, went into administration on 6 November with four UK subsidiaries including Molson Equipment Services. PwC was appointed. Of 345 UK staff, 203 were made redundant at once and the UK business is being wound down.
PwC's Tom Crookham, Mark (Toby) Banfield and Ross Connock are joint administrators of the parent, Insolvency Insider UK reported. Vesela Romagnoli takes Banfield's place on the team at the four subsidiaries: Molson Scotland, Aggregate Processing Solutions, Capital Equipment Finance and Molson Equipment Services. The parent company filed notice of its intention to appoint administrators on 5 November, according to court records cited by Scottish Construction Now. The administrators said a sale of the UK business had been explored, yet no bidder could finish a deal in the time left.
The group traded from 16 sites in England and Scotland. PwC confirmed that 14 of the 203 redundancies were at the Red Barnes Way depot in Darlington, The Northern Echo reported. Of the remaining 142 UK staff, a small number moved with the US business and others were kept on to sell machinery and spare parts and to collect money owed to the companies. Scottish Construction Now reported that about 140 further jobs are expected to go. The administrators said they would help former staff claim from the Redundancy Payments Service.
Right after the appointment, Molson Group's shares in its US businesses, which include Powerscreen dealerships in California, Texas and Washington, went to Fieldsec Hastings Limited, a company incorporated for the purpose. All US employees transferred. The price has not been disclosed.
The UK companies have stopped trading. The administrators have not said publicly what happens to open customer orders, servicing or agreements written by Capital Equipment Finance, and no figure has been given for what creditors are owed. The group's last published accounts, for the year to 30 September 2024, showed a £10.3 million pre-tax loss on revenue of about £333 million.
Why it matters: More than 200 former staff are relying on the Redundancy Payments Service for statutory redundancy, holiday and notice pay. Customers with orders, service work or finance agreements, and suppliers owed money, have had no statement yet on what they will get.
If this affects you
- Employees of an insolvent employer can claim redundancy pay, unpaid wages and holiday pay from the government's Redundancy Payments Service, and the online claim asks for a CN case reference number. gov.uk
- GOV.UK lists administration as a form of insolvency under which staff can apply to the government for redundancy pay, holiday pay, unpaid wages and statutory notice pay. gov.uk
Sources
- Molson Group enters administration as PwC winds down UK operations, 203 jobs lostInsolvency Insider UK, Nov 8
- Administrators confirm number of redundancies at Darlington as major firm collapsesYahoo News UK (The Northern Echo), Nov 9
- 200 jobs lost as Molson Group's UK businesses enter administrationScottish Construction Now, Nov 9