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  • Insolvency review - Week 23

     

    RCM Weekly review - June 2019 - Week 23

     

     This week: Ford to close Bridgend engine plant with 1,700 jobs lost, Aviva cutting costs with 1,800 roles to go and Arcadia’s future in the balance as landlords oppose CVA.

    6th June 2019

     Ford to close Bridgend

    Ford to close Bridgend engine plant in 2020 with 1700 jobs to go.

    Ford have today confirmed that they are to close their Bridgend engine plant in September 2020. The 1,700 workers were told of the news on Thursday morning after much speculation in recent days. The imminent end of a contract with Jaguar Land Rover to manufacture engines and a general decline in demand for the Ford engines produced at the plant was blamed for the closure.

    President of Ford Europe, Stuart Rowley said that "Residual demand out of Bridgend is really not viable, because it only had demand for less than a fifth of the 700,000 engines it produced in its peak years” In a message to the workers he said, “It’s very difficult for them. This is one of the most difficult decisions we make. We know it affects them their families and their communities and they have done everything right… I want to be very clear of that… the employees of Bridgend have been great employees.”

     

    Read Ford's press release here:
    Ford Confirms Start Of Consultation On Potential Closure Of Bridgend Engine Plant In Support Of Business Redesign


    6th June 2019

     Aviva to cut 1,800 jobs

    Aviva announce 1,800 job Cuts at latest investor update

    UK insurance giant Aviva has said that it will cut 1,800 jobs worldwide in order to reduce costs. The role reductions will take place across the group over the next 3 years. Aviva said that they will look to ensure that redundancies are kept to a minimum and wherever possible, through natural turnover. Aviva has a global workforce in 16 countries and employ a total of 30,000 people with 16,000 of those based in the UK.

    President of Ford Europe, Stuart Rowley said that "Residual demand out of Bridgend is really not viable, because it only had demand for less than a fifth of the 700,000 engines it produced in its peak years” In a message to the workers he said, “It’s very difficult for them. This is one of the most difficult decisions we make. We know it affects them their families and their communities and they have done everything right… I want to be very clear of that… the employees of Bridgend have been great employees.”

     

    Read Aviva's update here:
    Aviva plc investor update - 6th June 2019


    5th June 2019

     Arcadia’s future in the balance

    Arcadia’s future in the balance as landlords oppose CVA

    The future of the Arcadia Group owned by Sir Philip Green is still hanging in the balance after its proposed company voluntary arrangement (CVA) has been opposed by landlords. The proposed CVA would have rescued more than 200 shops in the group, however they were asking their landlords for rent reductions of up to 70%. Earlier in the week Sir Philip Green agreed to inject an additional £25m into the groups pension fund.

    Arcadia now have until the 13th June to reach agreement with their creditors and have warned that the company may go into administration if the CVA was not approved.

    Arcadia group owns Topshop, Topman, Burton, Dorothy Perkins, Miss Selfridge, Wallis and Evans, and employ around 18,000 people.

    7th June update: Arcadia Group has revised the rent reductions set out in its company voluntary arrangement (CVA) proposal, to win landlord support. It is understood that landlords including Aviva, M&G and Intu were opposed to the original proposal

     

    Read more here:
    https://www.bbc.co.uk/news/business-48527876


     

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