69 jobs to go as firm collapses (From Worcester News)

69 jobs to go as firm collapses

7:10am Saturday 20th March 2010 in

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ALL 69 jobs have gone at a Worcester firm, which has become the latest casualty of the recession.

Workers from managers to shop floor workers were told at lunchtime yesterday that they would be laid off from Excel Automation in Gregory’s Bank in Barbourne, because no buyer has been found for the firm by administrators.

The company supplies automated materials and handling equipment for the car, nuclear, food and beverage, warehouse and distribution and aerospace sectors and has been at its base for the last 18 years.

A fortnight ago, the firm’s managing director Gary Sweeney ruled out job cuts and confirmed plans to move the business to a purpose-built base in Longbridge, Birmingham, within the next six months.

Lee Pilsworth, the manufacturing manager at the plant, said the company was kept going in a difficult trading period by the hard work of the firm’s major shareholders Geoff Hunt and Paul Craddock and said special thanks were due to Steve Belshaw who had helped production output.

He said: “They kept us going and kept us all in a job. We would like to thank all of the people on the shop floor for their hard work. I blame the recession, which has now caught up with us. It’s a sad day. It really is the end of an era.”

The company had a full order book but had not recovered from difficult trading conditions earlier on, he said.

He said: “Everybody has done what they can. We have also joined forces to try and find each other jobs. If I find a job I will try and get my colleague a job. Three people have already found jobs. The administrators are not to blame – they tried to find a buyer for the company. There were potentially three buyers and they have all pulled out. We’re all gutted. We are also gutted for the local suppliers that have supported Excel through thick and thin.”

Another employee, who did not wish to be named, said: “I feel we have been treated very badly. We knew the company had problems. We were wondering how it was going to survive with the cash flow problems and we were suspicious because they were late paying the pensions as well. The company was months overdue with its pension contributions.”

Mike Foster, Worcester’s Labour MP, said: “I don’t think anyone should be complacent about how difficult the economic situation has been.

“Despite the return to growth, the recovery is fragile and there will still be casualties and firms will still struggle, which is why it’s absolutely vital that we focus all our attention as a government on securing the recovery and not putting it at risk.

“One minute they were told they were going to Longbridge and suddenly they find they haven’t got a job. That’s a bitter blow.”

Jo Wright, who was appointed joint administrator with Kim Rayment, both of accountancy firm BDO, said: “It is unfortunate that the economic climate and difficult trading conditions have significantly affected the industry.”

Managing director Mr Sweeney was unavailable for comment as your Worcester News went to press.