Nearly 180 jobs are set to be preserved at Clugston Distribution Services Limited, a historic family-run haulage and logistics firm in Scunthorpe, through a rescue agreement. Management has confirmed that the business, which employs 179 people, is being acquired via a pre-pack administration arrangement by associated company Clugston Holdings, with family member Alistair Clugston involved.
Rescue deal details
The lifeline deal, which remains subject to legal procedures, follows difficulties the £22m turnover operation has described as "historical structural issues", alongside escalating fuel and operational expenses, and broader global economic headwinds. The most recent financial statements for the Brigg Road-based freight and tanker operator, covering the 12 months to the end of March 2025, reveal a pre-tax loss exceeding £558,000.
Management says the transaction will provide an opportunity to tackle the difficulties and establish a more viable operational framework. The firm's daily activities will carry on as usual, with customers and staff stated as the primary priorities.
Workforce and background
The entire workforce of 179 at Clugston, many of whom have been employed there for decades, will move across to the new entity as part of the reorganisation, with no job losses anticipated. The development comes after Clugston Distribution Services' previous rescue from the 2019 collapse of construction firm Clugston Group.
The Scunthorpe operation, which remained outside that insolvency procedure, was purchased by Leicestershire-based AJWG Ltd in 2020, reports Grimsby Live. In February last year, Clugston Distribution Services entered a Company Voluntary Arrangement, a mechanism enabling insolvent firms to settle debts over an agreed period. While that process reportedly created disruption, backing from staff and clients enabled the company to keep trading.
Management comment and history
David Millard, managing director, commented: "Clugston has a proud history, a dedicated and experienced workforce, and longstanding relationships with customers across a wide range of industries. Whilst the business has faced some significant challenges, we have always recognised its underlying strengths and considerable potential."
"This agreement represents a major step forward. It provides the opportunity to address the challenges of the past, build on the strengths of the business and establish a more focused, efficient and sustainable operation."
"We have a clear vision for the future, a strong leadership team and a determination to take the business forward. Our focus now is firmly on the opportunities ahead, continuing to deliver the high standards of service our customers expect whilst developing the business for the longer term."
"We are extremely grateful for the continued commitment of our employees and the support and confidence shown by our customers and suppliers throughout this period."
Established in 1922, JG Clugston Ltd began its trading life as a timber and builders merchant operating from its Carlton Street premises in Scunthorpe. The firm initially concentrated on supplying goods to the construction sector before broadening its horizons. During the 1990s, it diversified into commercial vehicle sales and exports, and more recently moved into bulk fuel distribution.
