Workers 'gobsmacked' by Christmas job cuts

DOORS CLOSED at fireplace manufacturers Etchells, in Mossley

WORKERS at a fireplace business face losing their jobs after the firm moved towards administration, just days before Christmas.

Fifteen staff at R Etchells and Sons in Mossley were told their jobs were being made redundant, owing to the company's financial position.

The firm makes and distributes gas and electric fires and fireplaces, and has been established for 40 years.

Staff were called to a meeting at the Egmont Street site earlier this week, where they received letters saying their employment had ended.

Workers were said to be shocked, saying they were not aware of any trading difficulties.

In early 2015, the firm announced it had won a significant contract linked to social housing. Later that year, it was sold to the Malta-registered HLD Group, which owns a number of industrial firms in the UK, Europe and United States.

HLD's website says it specialises in business with revenues of between £10 million and £100 million, and it aims to complete six or more acquisitions every year.

One worker said the Mossley work could be sent to another HLD firm ­- possibly in County Durham.

'Liquidate'

The worker, asking to be anonymous, said: "All staff received a text message on Monday, asking them to report to work at 8.30am. When we arrived, an HLD Group representative said there was no money, no pay, and absolutely nothing for anyone. He said they were going to liquidate the company.

"We were all shocked. Gobsmacked. We had no warning that anything was wrong. The managing director, Darren Etchells, looked distraught.

"By 9am, a locksmith had changed the locks and they took our keys, company mobile phones and fuel cards. An administrator then set up a computer in the office and said he'd help staff apply for redundancy. It looked liked the process had been started because there were case-codes for each of us."

He added: "I've worked here for a good few years and some staff have been there for much longer. We've all been good, loyal workers. All this has happened just days before Christmas. Some staff have young families and mortgages. One had just got a loan for a car. One lad said he had £26 left in his bank account after bills."

He viewed R Etchells as a "major player" in the industry and hoped it or HLD Group would "put their hands in their pockets" to help the staff.

He said workers were paid weekly and the last wages went out on December 16. He hoped to receive at least one week's pay and perhaps some holiday money, but was told any potential payments will come in late January.

He added: "I hope I can get another job. I will to hold on over Christmas then see what's available."

He believed a small number of staff remain at the Mossley site with Mr Etchells acting as an adviser. But he was baffled about the potential administration.

"Up until recently, work had continued as usual. There's been a slight downfall in orders, which was blamed on government cutbacks to social housing and to Brexit, but orders were still coming in and deliveries going out."

'Survived'
"We've survived tougher times in the past," he said. "Mossley is only a small town and there's talk of setting up a Facebook page to help the workers."

The Chronicle has seen a letter from insolvency specialist Insol Group to Etchells workers.

It states that Julien Irving and Andrew Poxon, of business recovery firm Leonard Curtis, are the proposed administrators and Insol Group is to act as their agents in employee-related matters.

The letter states: "I understand you were an employee of the company and your employment has recently ended. Due to the company's current financial position, it is not able to make payments to you for outstanding monies such as arrears, holiday, redundancy pay and pay in lieu of notice.

"Under the provisions of the Employment Rights Act 1996, you may be entitled to claim the monies owed by the company from the Redundancy Payments Service (RPS), subject to certain statutory limits. The RPS has a scheme in place, which in effect steps into the shoes of an employer and makes payments to employees for soutstanding monies."

The letter gives advice and recommends Etchells workers to visit the government website gov.uk/claim-redundancy.

If workers want to claim for compensatory notice pay, the letter says they should take all steps to reduce any losses they might suffer by, for example, immediately claiming all benefits and allowances they may be entitled to, and seeking new employment.

The Chronicle contacted R Etchells and Sons, HLD and Leonard Curtis for comment but none was received at the time of going to press.