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T5 labour agency hits rocks but stays af loat

NEWS - Hennellys in financial trouble again

A LEADING labour supplier at Heathrow's T5 has gone into administration.

Middlesex-based Hennelly's Utilities provides workers for Balfour Beatty at Britain's biggest building site.

There were rumours at the job last month that Hennelly's was in trouble and Companies House records show that the firm went into administration on January 17.

The company has now been brought out of administration by its management team and is continuing to work at T5 under the name of Hennellys Limited ? registered at Companies House in December.

Administrator Gareth Roberts of accountant Hurst Morrison Thomson said: 'We were called in because the company was insolvent.

'I was on the verge of shutting the company down and making 200 redundancies when the management came forward with a package to keep the business alive.

'The directors are currently drawing up details of how much the old company owed at the t ime of administration.' A Balfour Beatty spokeswoman said: 'When Hennelly's went into administration the administrator took charge before Hennellys Limited took over responsibility for the workforce and they are now being paid as normal.' Workers at T5 were left out of pocket last July when cheques from the labour agency bounced. The firm blamed 'an administrative error'.

A Hennellys spokeswoman refused to comment on the administration or the circumstances behind the new company taking over.

Hennellys has enjoyed a colourful history since founder Sean Hennelly started the firm in 1975.

Mr Hennelly was banned from running a company for eight years in 1998 after incurring debts of almost £10 million through failed businesses where he was a director.

A High Court hearing heard that the companies included S Hennelly Plant Hire, which went bust in 1995 owing £3.1 million, Hennelly Tunnelling, wound up the same year with debts of £1.9 million, and Hennelly Publications, which collapsed in 1993, owing £700,000.

Hennelly's Utilities was set up in 1998 and took over a contract from another of Mr Hennelly's firms, Roe Roads, which had gone bust two weeks earlier.