Jewson owed by failed Hewlett group
Published: 05 April, 2013
Jewson is owed £197,000 by contractor Hewlett Group, which collapsed owing £11.6m to trade creditors and around £4.4m to its bank.
According to the administrator’s report into the firm’s failure in January, the management buy-out team bought the assets of Hewlett’s civil engineering and rail businesses for around £1.5m and its plant hire arm for £66,000.
The deal for the businesses, which were later renamed Hewlett Construction and Hewlett Plant, saved around 300 staff jobs. This week Hewlett Construction said it had won its first major £12.5m infrastructure contract since being rescued from the administration.
According to the report by administrator BDO, a string of suppliers have been left out of pocket by the collapse of Hewlett Civil Engineering, which the previous management team blamed for failing to support its restructuring plan.
Among the major creditors are Burdens, which itself fell into administration owed £292,000, hirer Gap Group hit for £331,000, ATG Access owed £226,000 and Jewson with £197,000 outstanding. BDO said the sale of assets had raised insufficient cash to pay trade creditors and Hewlett’s bank would also suffer a shortfall.