Molson Group, one of Britain's largest construction machinery suppliers, has collapsed into administration, resulting in 203 immediate job losses across its UK operations. The Bristol-based company entered administration on Friday, November 6, after attempts to secure a buyer failed.
Company Background and Operations
Molson Group, which has been operating for around 30 years, supplies new and used heavy machinery to the construction industry. It operates sites across England and Scotland, including Darlington in County Durham and Motherwell in Scotland.
The company had been struggling with weaker demand in the UK construction market, alongside rising financial pressures and difficult trading conditions.
Administration and Job Losses
Administrators from PwC have been appointed to oversee the winding down of the group's UK operations. Several options were explored to save the business, including a possible sale of its UK operations, but no deal could be completed in time.
The group employed around 330 people in the UK, meaning a significant proportion of its workforce has now lost their jobs. A smaller number of employees have been kept on to help administrators sell the company's remaining machinery and parts and recover money owed to the business.
Administrator's Statement
Ross Connock, joint administrator and director at PwC, said: "It is regrettable that Molson Group’s UK businesses have entered administration and that this has resulted in a significant number of redundancies."
He added: "We recognise how difficult this will be for those affected and their families."
The administrators said their immediate priority was to support staff who had lost their jobs, including helping them make claims through the Redundancy Payments Service.
US Operations Sold
While the UK business is being wound down, Molson's operations in the United States have been sold to a newly formed company. The deal means the American business can continue trading, with its employees and a small number of UK staff transferring to the new owner.
Molson Group was founded in 1996 and grew to become one of the UK's largest independent suppliers of construction equipment. Its machinery has been used across construction, demolition and recycling projects.
The company's latest published accounts showed a pre-tax loss of £10.3 million on turnover of £333 million. Administrators will now continue selling off the remaining UK assets as the business is wound down.
