Northamptonshire plant and construction firm Weldon Plant has gone into administration today after it failed to renegotiate its banking facilities.
It is thought that the firm’s overdraft with Royal Bank of Scotland was cut from £3.15m to £2.2m.
The Corby-based company, which carries out demolition and earthworks as well as small civils projects, employs 140 people and owns a fleet of specialist machinery and vehicles. It is understood that as many as 113 jobs are under threat.
Chairman Peter Webb issued this statement: “We have been aware of various rumours circulating about the company in recent days. After 30 years of successful trading and weathering the first part of the current recession, the situation is that the company has, for the last two months, been trying to renegotiate its banking facilities.
“During those negotiations our bank has twice made substantial cuts to our facilities without notice, and in our opinion, without justification. This has placed strain upon our cash flow and has delayed payments to suppliers and subcontractors, many of whom are small sole traders and partnerships.
“After lengthy and detailed the directors are of the opinion that the only way forward is to place the company into administration. This decision has not been taken lightly as we know how many individuals and families will be affected by this course of action.
“The company would like to thank its staff, subcontractors and suppliers for all their efforts on its behalf and wish everyone success in the future.”