August 29 2014 Latest news:
By shaun lowthorpe Business editor
Saturday, September 8, 2012
A further 46 staff have lost their jobs at Great Yarmouth-based manufacturers Norfolk Capacitors Limited as it emerged that they had not been paid in August.
The firm, which employed more than 100 workers at two sites in the town and Gorleston, went into administration last week with the immediate loss of 20 night shift jobs.
Since their appointment, administrators KPMG have been trying to secure the commitment of the company’s customers to support ongoing trade.
However, joint administrator Chris Pole said the loss of a major contract, has led to 46 staff being made redundant, leaving a workforce of 37 across the two sites.
A worker, who was among those who were dismissed yesterday, told the EDP: “Nobody has been paid for six weeks. They knew this was happening and I don’t know why they didn’t say something at the beginning. People could have taken voluntary redundancy. Those they’ve kept on have more than nine years service. The 4pm to midnight shift were sacked at the 10pm meeting on Thursday and the daytime shift were culled. There was absolutely no warning. The government fund may cover one month of wages, but after that we’ll be last on the list of creditors.”
Mr Pole said: “We have spent several days trying to secure agreements with customers to continue doing business with Norfolk Capacitors Limited.
“While the response from the company’s longstanding customers has been positive, the loss of a recently won key contract has led to the decision to down size the business to a level appropriate to service the remaining order book.”
He added: “We are disappointed that we have had to make redundancies, but there is now an opportunity for the business to re-focus on its historically profitable core operation. We will continue to trade in the short term with the remaining staff, as we look for a buyer for the business.”
Staff had been paid from September 1, when the administration period began but those who had not been paid by the company in August were being referred to the Insolvency Service.
Great Yarmouth MP Brandon Lewis, said: “I am very sorry to hear that further redundancies have been made at Norfolk Capacitors. The company have historically been an important employer in Great Yarmouth. In the current economic climate, the loss of a contract is felt by the entire company. I am pleased that Norfolk Capacitors are looking to re-structure the business and I am confident that they will come out of their current difficulties stronger than ever. It is important that the company provides the necessary support to those people who have lost their jobs – I will be following the situation closely and, as always, will be here to help either party if I can.”
A Norwich-based business which started as a “man with a van” operation is eyeing further expansion after seeing its predicted turnover increase from £6,000 to £340,000 within five years.