Jobs shock as firm goes into administration
BUILDING firm Castleoak has gone into administration.
The Cardiff-based developer, which developed and constructed retirement and care homes, filed for administration in late October after what employees described as a “very difficult year”.
The move means that more than 100 Castleoak workers have lost their jobs.
The firm was still taking on new staff just a week before bosses filed for administration, including the company’s new Head of Supply Chain, David Thomas, who joined Castleoak after leaving his previous employer of 13 years.
Mr Thomas said the situation “beggars belief ” and branded the company’s conduct as “unprofessional” and “shocking”.
“It’s ridiculous, they were almost out of business by the time they employed me,” he said. “My offer letter came through on September 17, I started on October 18 and they went out of business on October 25.
“I’d always heard good things about them as an employer so taking the job was a no-brainer – but what’s happened is shocking.”
Having worked in SME (small and medium-sized enterprises) construction for 18 years, Mr Thomas was aware there were considerable strains on the market, with cash flow really tight.
“In fact, I actually brought up those issues with Castleoak at my interview back in August,” he added. “But I was reassured that the worst of what the pandemic had to throw at Castleoak was now behind them and that there were better times ahead.
“The pandemic has been hard and a lot of people have been made redundant, but in terms of my case they must have had it within their power to maybe review my position and reconsider if offering employment was something they should be doing.
“I’m looking for a new job now and hope to be employed before Christmas, there’s a few potential opportunities out there for me. But that doesn’t detract from how unprofessional Castleoak have been in their dealings with all of this, which just beggars belief.”
Other stunned staff took to LinkedIn to voice their frustrations after being given the devastating news, as well as suppliers who were left holding unpaid bills.
“Castleoak or should I say Castlejoke, what a mess,” wrote one. “Again it’s the supply chain that also suffers. We are not banks so don’t treat us that way.”
Another added: “How many subcontractors and their families are going to suffer again at the hands of this company?
“We have been trying to get thousands they owe since March, and when we agreed a figure, to stop us going to the wall, all they talked about was retentions and we still never got a penny.”
With its headquarters based in Pontprennau, Castleoak had its own design and build division and offsite manufacturing facility.
Administration notices for two companies – Castleoak Holdings (Cardiff Gate) Limited and Castleoak Offsite Manufacturing Limited – were filed on October 25. Both companies are subsidiaries of the parent company Castleoak Holdings Limited.
It has also been reported that the manufacturing facility’s assets have now been acquired out of administration by Northamptonshire-based roof trusses and floor joists manufacturer Robinson Manufacturing, which plans to restart production at Castleoak’s Ebbw Vale site.
Latest accounts filed at Companies House for Castleoak Holdings Ltd show that in the year to March 31, 2019, the group made a pre-tax profit of £496,527 from a turnover of £67.2m and employed 152 staff.
The firm was still involved in a number of large-scale projects at the time of filing for administration, including the development of 40 low-carbon affordable homes in Alway in Newport.
They were also responsible for developing the £8.5m Bryn Ivor Lodge care home in Castleton in 2014.
Castleoak has been approached for comment.