Administrators handling the affairs of Clugston Group said they had successfully agreed a sale of the share capital of its haulage arm, Clugston Distribution Services (CDS).
CDS was not part of the insolvency process and continued to trade as normal following Clugston Group’s fall into administration last month.
It has now been acquired by AJWG and KPMG said the sale ensured that CDS continued to trade as a standalone entity, preserved value in the supply chain as well as saving 153 jobs.
James Clark, joint administrator of Clugston Group, said: “This sale represents a positive outcome for Clugston Distribution, its stakeholders, and for the local area.
“A solvent sale ensures ongoing trade for the business, its supply chain, and, furthermore, helps secure jobs for the incumbent workforce.
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“The deal is testament to the considerable efforts of the senior management team at Clugston Distribution and my colleagues who have worked tirelessly to secure the future of the business.”
He added: “Of course, there is still much more work to do. We continue to explore all options as we look for buyers for the contracts and divisions in administration.”
KPMG was appointed administrator of Clugston Group, Clugston Construction and Clugston Services on 6 December.
Operating from over 25 sites primarily across the North and Midlands, the business had companies involved in construction, civil engineering, logistics, property development and facilities management.
KPMG said the companies suffered as a result of losses on a number of large and complex energy from waste contracts, accentuated by the insolvency of a key subcontractor.
