Flood workers may not be paid
7:00 - 19-May-2008
The Mail has learned Sheffield-based firm MasterStyle Limited is preparing to enter into liquidation after running into financial difficulties.
The company is a sub-contractor for civil engineering giant Kier Group Plc, which was one of three large firms awarded contracts by Hull City Council after last summer's devastating floods.
According to insolvency firm Abbey Taylor Limited, also of Sheffield, it is unlikely workers recruited by MasterStyle will be recompensed.
Administrator David Hurley said: “On Thursday we were instructed by MasterStyle company directors to assist putting them in liquidation.”
A meeting of creditors has been called for June 11 at the insolvency firm's offices at Blades Enterprise Centre, which is part of Sheffield United's ground.
Mr Hurley said: “A liquidator will be appointed to realise any assets, such as land or equipment, which may be used to pay creditors.
“In general, it is rare creditors are paid.”
A disgruntled electrical contractor, who did not want to be named until after the hearing, told the Mail: “This could affect loads of us.
“MasterStyle has recruited local labour like myself and we may not be paid for the work we carried out. It is a major concern.
“I have tried contacting Kier Group Plc, but they don't seem to want to know. I think it is down to them to pay us - they recruited MasterStyle.”
The Mail understands homes still being repaired following the June 25 flood will not be affected.
Tracy Pocklington, external relations manager for the housing investment arm of Hull City Council, said: “In terms of people on the ground whose homes were flooded they will not be affected. Customers are getting repair work as normal.
“The contract held by MasterStyle was immediately transferred to another firm. I am unable to divulge the name of that firm.”
A spokesman for Bedfordshire-based Kier Group Plc said: “We are not in a position to comment on this situation as this is a matter for MasterStyle to take up with its creditors.”
When the Mail repeatedly tried to contact MasterStyle the phones were not answered.