Some sub-contractors which were working for collapsed North East construction firm Tolent have themselves been forced to lay off staff, it has emerged.
Interpath Advisory was appointed as administrators of Gateshead-based Tolent plc and five of its operating subsidiaries on Monday, making 313 workers redundant with immediate effect, after the firm fell into difficulties. Heavy losses incurred on Tolent’s biggest project to date, the £85.5m Milburngate development in Durham, were blamed for having a profound impact on the companies’ working capital, ultimately leading to Interpath’s appointment.
The company had shut down sites last Friday and sent staff home, having tried to secure its future. Around 90 workers have been retained at the firm while administrators seek ways to save the business, which had bases in Shotton Colliery, Leeds and Redcar alongside its two Team Valley head offices.
