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Hawes Signs makes 60 people redundant
Hawes Signs, a sign-making company in Northamptonshire has laid off about 60 workers after losing £3 million worth of business in under two years. Hawes Signs, which employs 200 people in Moulton Park, told a range of admin staff and about 20 fitters they were losing their jobs on Tuesday. Letters handed to staff said the business, whose past clients have included Tesco, Rolls Royce and various banks, “had incurred around £3m of losses in the last 18 to 24 months due to operational efficiencies and loss-making contracts.
“As a result of these losses the company is technically insolvent”. “the current financial circumstances of the company mean that it is no longer able to meet all the existing staff and salary costs going forward”. As of yesterday (Friday) some of the laid-off staff had not received wages from work carried out in the last month”. The letter said: “We are currently calculating what is owed to you in terms of wages, holidays, notice pay and redundancy”. “We will communicate to you in the coming days the quickest way of getting these payments to you given the financial constraints of the business and taking into account the recommendations of the advisers.”
One worker who was among the redundancies said he had worked for Hawes Signs for more than a dozen years but his dismissal, following a meeting the previous day to say his job was at risk, took five minutes. He said: “We are owed money for time worked, our first pay packet after Christmas, and we have no idea if or when we’ll get it. “There are lots of desperate people who are relying on having that money.” Neither Hawes Signs or Leonard Curtis, its ‘professional advisers’ responded to requests for a comment.
For further information:
Hawes Signs Limited
Sandfield Close,
Moulton Park,
Northampton,
NN3 6EU
01604 790000
http://www.hawes.co.uk/
info@hawes.co.uk.
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4 Replies
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Another tragic event. One thing I have noticed over the years is that there is a huge surge in business failures (not just sign companies but all sorts of businesses) at the turn of the year. Caused mainly by cashflow reaching it’s breaking point because so many companies effectively close down for weeks leading up to and after Christmas yet they still have their overheads to pay but with no work being done there is less cash coming in.
It’s a vicious circle – Half of industry shuts down – so there is no work for every other industry to do – so they may as well shut down too.
Maybe Britain should adopt a more "American" approach to Christmas and new year? By all means celebrate these occasions for a day or two, but why do we effectively close down British industry for two to three weeks at a time each year?
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quote Phill Fenton:By all means celebrate these occasions for a day or two, but why do we effectively close down British industry for two to three weeks at a time each year?For many I think it is more cost effective to close at a traditionally quiet time than pay staff, heat, light etc
I know Xmas and New Year, even though I stay reasonably busy are time when I consciously try not to spend unless I absolutely have to.
John
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I hate January!! work is often slower leading up to Christmas, Christmas break now seems to be the best part of 2 weeks, so January starts a little slow work wise with less money coming in – credit card bills arrive, VAT is due, income tax is due. It’s a pain for me and I’m just a ‘Fred in a shed’ I can only imagine what it is like for larger business.
Alan D -
Same here Alan,
We invested in upgrading Xerox digital press & purchased a laminator to accompany it, before Christmas.
We closed from xmas eve, until 5th Jan, and on returning we’ve been steady, the new Xerox is working hard, but trying to get paid out customers is hard work!
I know it’ll all come good in a few weeks, but we’re robbing from Peter to pay Paul, which I hate! :shake:
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