"A major construction firm has fallen into administration after trading since 1970, administrators blamed "wider economic headwinds" which is the primary reason for the collapse of the plant dealer. Nearly all of Warwick Ward (Machinery) Ltd's staff has been made redundant, and it was one of the UK's largest stockists of earthmoving and waste recycling equipment. The company has their headquarters based in Barnsley, Yorkshire with depots in Harlow, Essex and Bromsgrove, Worcestershire. According to reports all 89 staff have been made redundant."
"Employee ownership trusts (EOTs) can often be highly successful, creating an exit route for shareholders, and bringing long-term operational and cultural advantages across the business. However, the additional debt that many such companies take on as part of the sale to an EOT can prove to be a burden further down the line, particularly if trading conditions become difficult. In Warwick Ward's case, the debt accrued as part of its transition to employee ownership was certainly a contributory factor in its difficulties."
Warwick Ward (Machinery) Ltd, founded in 1970, has entered administration with nearly all staff made redundant. The company was one of the UK's largest stockists of earthmoving and waste recycling equipment, headquartered in Barnsley with depots in Harlow and Bromsgrove. Reports state all 89 employees have been made redundant. Joint administrator James Lumb said employee ownership trusts can deliver long-term operational and cultural advantages, but the debt taken on during sale to an EOT added financial strain. The accrued debt contributed to difficulties, and wider economic headwinds in construction and waste recycling placed unsustainable pressure on cashflow, prompting administration.
Read at London Business News | Londonlovesbusiness.com
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