19 May 2006
Construction firm Dew Pitchmastic is the latest company to
declare itself insolvent because it cannot afford to keep paying
into its pension fund.
The firm, with 465 staff in the UK, called in the receivers
after failing to find a buyer earlier this year. Two of the group's
subsidiaries are in receivership - Dew Construction and Dew
Remediation - while its Pitchmastic division is continuing to
trade. The receivers say the group has simply run out of cash.
Dew Pitchmastic employs 403 at its construction division in
Oldham, 18 in Sheffield where the company has its headquarters, and
44 at its Pitchmastic division, which is still solvent.
The receivers, Ernst & Young said "In the past few years,
the Group has paid an extra £4.6m into the pension scheme,
with £1m in the last year. These payments, together with the
cash effect of some contract disputes, have resulted in the Group
facing a cash requirement it couldn't fund."
