Scores of jobs under threat as Wigan rail plant firm calls in administrators

TXM Plant Limited, Equipment and Track Solutions Limited and Bacchus Newco Limited had relatively recently posted profits of £4m on a turnover of £38.9m.

But administrators from Teneo Financial Advisory Limited said the business, based on Trading Estate Park Lane, Wigan Road, Ashton, had faced significant challenges lately, with customer demand falling in the face of rail industry budget cuts while simultaneously suffering the effects of high inflation and increased interest rates.

The group, formerly known as NDS Plant, was part-owned by private equity investor LDC which then backed a management buyout from Network Rail, turnover having doubled since 2013.

But it had been servicing loans of £18m for plant and machinery.

A statement from Teneo said it had been exploring multiple options, including raising more capital, refinancing existing debt, and putting the business up for sale. “Unfortunately, none of these efforts was successful and the Directors have therefore taken the difficult decision to appoint administrators,” it added.

Teneo said it was working with stakeholders including key customers, with a view to a sale or, instead, bringing about an orderly wind-down of the business, hanging on to around 45 staff to manage the process.

The company said that 150 employees are at risk of redundancy and the administrators are communicating with them while working closely with the Redundancy Payments Service to support staff in recovering any statutory entitlements which may be due.

Joint administrator Kristian Shuttleworth told the Business Desk website: “This is a very difficult time for employees, and we will do all that we can to support them over the coming weeks, including speaking to the Job Centre Rapid Response Unit as a matter of urgency and liaising with the insolvency service to expedite payments due under the Redundancy Payment Service.”

Mick Lynch, general secretary of RMT said: “I shall be engaging with the RMT Parliamentary Group as the crisis at TXM Plant is not unique but has come about as a direct result of the government underfunding a vital service such as the railways over many years.

“I have written to Network Rail over this matter and asked the company what steps it is taking to secure such jobs within Britain’s railway and how it is going to ensure that the supply of equipment carried out by TXM Plant will continue not just in the immediate future but also long term.”