Page 444 - The Case Lab Book

Further evidence that the company was back on its feet was a significant
investment in its own headquarters at Lamledge Lane, Shifnal where it opened a
new, purpose-designed and built training centre.

Company founder Tom Frain was at the official opening and said he was proud of
the new facility which would help tackle the problem of a shortage of skilled
workers in the industry.

His son, Dr Simon Frain, then chairman, said the centre would ensure the Wrekin
workforce was training to the highest standards.

But less than a month later, the company said it was being forced to cut jobs to
preserve its “long-term future”. More than 25 posts were axed, mostly office staff
at Shifnal.

By early 2007, the Frains were looking for a buyer. From a turnover of £100m in
the financial year to March 31 2007, Wrekin suffered a pre-tax loss of £9m.

RBS

RBS was the sole secured creditor of Wrekin Construction

Wrekin Construction, claimed it still had £1.5m of its RBS overdraft, but it had
been frozen by winding up petitions, and the bank was unwilling to lend any more
to assuage its creditors. Moreover, the firm claimed it had signed two contracts
worth a total of £50 million on the day it had been taken into administration.

On the back of this there was a huge amount of anger directed at RBS for taking
what appeared to be a successful company into administration and crushing a
perfectly good business with the loss of 530 jobs.

In Parliament, Prime Minister, Gordon Brown was asked about the closure of
Wrekin Construction and the role of RBS but failed to comment.

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