CragRats cashflow problems hit other businesses

Jun 12 2009 Huddersfield Daily Examiner

FAILED business CragRats owes tens of thousands of pounds to local businesses, it has been claimed.

Seventy people lost their jobs when the award winning Holmfirth based theatre and training company went under earlier this week.

Administrators say the decision was caused by cash flow difficulties.

It comes as records from Companies House of their most recent accounts available – to August 31 2007 – show CragRats made a net debt of £928,734 and an operating loss of £282,576.

Worried suppliers, contractors and former employees have now come forward claiming they are owed thousands.

Martyn Clegg, an electrical contractor, said he was owed £24,000 but had heard nothing from the company’s directors despite having a 10 year relationship with the firm.

He said: “I was absolutely livid when I heard the claim they had paid off their suppliers.

“The directors didn’t even have the decency to call me, they got one of their office staff to do it.

“It’s just disgusting how they have done it.”

John Duxbury, a former employee who was made redundant two weeks ago said he couldn’t understand why a number of employees went through a painful consultation process only for the firm to go under weeks later.

He is now worried he will never see his £4,000 settlement package, saying: “The problem I face is that I can’t make any contact with them.

“I was told that people who were still in employment (when they went into administration) are to go back and claim redundancy money.

“But 12 of us who were made redundant two weeks ago have still got settlements of various amounts that we are yet to receive.”

Andrew Toothill, managing director of Honley based Enterprise Prints, added: “They were a super company to do business with – they tried to use local suppliers, all the staff were friendly and it’s a real shame that they have gone.

“With the demise of such a big local company owing such a lot of money the knock-on effect to many of the smaller local suppliers is not going to be pretty within the local business community.”