Nearly 993 staff members will lose jobs with immediate effect as one of Leicestershire’s biggest employers fell into administration, reports Asian Lite news
Mark Group, the home insulation firm told 1165 employees in a meeting that the company had gone into administration and 939 staff would lose their jobs with immediate effect.
A skeleton staff of 226 has been retained to keep the business ticking over in the hope that the administrators can find a buyer, reports Leicester Mercury.
Earlier in the day, Mark Group’s managers had scrambled together to buy the company from its parent SunEdison, in a last-ditch attempt to save the business.
But, after taking advice, they decided they had no choice but to put the business into administration, says Leicester Mercury.
They blamed deepening losses on the Government’s about-turn on green energy policy.
Bill Rumble, Mark Group’s chief commercial officer, told Leicester Mercury, “I’ve been in the business nine years and I am desperately sad.
“Our thoughts are with all our colleagues and their families and we are keen to do whatever we can to support them at this difficult time.”
He added: “Recent changes to Government policy on energy efficiency put a lot of pressure on the business.”
The solar industry has been hit by a series of policy about-turns relating to renewable energy subsidies.
In a statement, Mark Group said: “This decision has not been taken lightly but the ongoing losses of the business meant it was our only option.
“The turnaround plan, which was already underway, focused on solar panels but the Government’s recent policy announcements mean this is no longer viable.
“Mark Group’s management team recognise the talent and expertise within the business, which has been developed over four decades, and believe there is an opportunity to refocus the business on other energy saving technologies.
“Mark Group is now in the hands of administrators who are working to secure an urgent sale of the ongoing business.”
Deloitte, the accountancy giant, was appointed as joint administrator for Mark Group this afternoon.
Administrator Chris Farrington said: “We are working with remaining employees to secure an urgent sale of the ongoing business. Prospective purchasers are encouraged to contact the administrators as soon as possible.”