Pre-pack deal leaves majority of staff without two-months’ wages
Staff at architect YRM have been left with thousands of pounds in unpaid wages after it emerged the company entered a pre-pack administration hours before being taken over by RMJM
Accountant Chantrey Vellacott DFK was appointed administrator on 23 December and RMJM took over the practice later that day.
The deal saw around 20 people lose their jobs 48 hours before Christmas with most owed two months’ pay. Just five YRM staff have been offered roles at its new owner, including former chief executive John Clemow, who is now a principal at RMJM.
The 67-year-old practice, which has been working on designs for a nuclear power station at Hinkley in Somerset, went into administration under a controversial “pre-pack” which allows the purchaser to buy parts of a company and leave the firm’s debts with the administrator.
One ex-employee said: “We have not been paid since October. We’ve been given the runaround by directors who said we would be paid by the middle of November. It’s been a deliberate tactic to avoid staff breaking their silence before the senior staff could salvage their careers at a new company.”
Chantrey Vellacott DFK declined to comment but Clemow said YRM was in administration and admitted: “We approached RMJM [about a takeover].”
Clemow declined to confirm the arrangement of a pre-pack, and repeated earlier claims that the company had been brought to its knees by the cost of closing its offices in Vienna and Bucharest and falling workloads.
But ex-staff blamed management for a series of poor decisions. “This situation was almost inconceivable a year ago as YRM had a number of good prospects and a very successful and growing energy sector,” one told BD magazine.
“It seems incredible that the very people who led YRM into this would be the ones continuing their employment.”
Another blamed the decision to open overseas offices, claiming the Vienna branch “pulled in no work whatsoever”. The source added: “The directors were on high wages and weren’t bringing in the work.”
YRM director Iain Macdonald has now been made principal at RMJM while associates James Thomas, project leader at Hinkley, and Peter Greiner plus architect Adrian Wiehahn will form a new London studio called YRM Lab.
RMJM chief executive Peter Morrison said YRM was a leader in aviation, nuclear and technology projects and added: “It significantly strengthens RMJM’s offer.”
A version of this story appeared first here at Building’s sister publication BD.
23 February 2012
30 January 2012
19 January 2012
18 January 2012
16 January 2012
13 January 2012
11 January 2012