It's official - hundreds of jobs saved at collapsed Huthwaite-based firm nmcn
Hundreds of jobs have been saved, despite the collapse of the Huthwaite-based company, nmcn, it has been confirmed.
Engineering and construction contractors nmcn went bust earlier this week after hitting financial problems during the coronavirus pandemic.
But administrator Grant Thornton has secured a deal to sell certain divisions of the company that will save the jobs of 680 of the 1,700-strong workforce.
As well as its headquarters in Huthwaite, where about 80 staff were based, nmcn ran regional offices and workshops across the country, including a centre at Annesley for about 50 workers.
It is unclear yet exactly where the jobs will be protected, but it is now certain that the telecoms, plant hire, transport and accommodation operations of the failed contractor will transfer to new owners.
A big question mark remains over nmcn’s main divisions in the water and civil engineering markets.
The saved sections of the nationally-renowned, 75-year-old company have been bought by Svella, a private investment organisation which raises funds and acquires controlling interests in under-performing businesses.
Headed by Andrew Tinkler, the former boss of the Stobart Group, Svella was created to invest in businesses that still have growth potential and revive them to the point where they can provide a return for shareholders.
Since June, Svella had been working behind the scenes in a bid to rescue nmcn with a £24 million refinancing package. But this fell through because the Huthwaite firm could not publish its 2020 accounts on time as financial losses mounted to £43 million.
Now Mr Tinkler is delighted to be helping nmcn get partly back on track. He said: “We will work closely with management teams to develop a comprehensive, strategic plan, and provide the support and investment to deliver operational excellence and facilitate growth.”
He was particularly excited by the future prospects for the telecoms division, which can now fulfil contracts for infrastructure services with customers such as BT and Virgin Media.
He added: “Nmcn was one of the UK’s fastest-growing telecoms contractors and was actively supporting the government’s ambitions for nationwide coverage of ultrafast fibre broadband through a number of significant contracts. We aim to continue to deliver on these ambitions.”