East lancs Railway caught up with potential £18k loss in building company collapse

[fsmr]

I cant believe that this company didn't know they were likely to go under the day before they stole yes stole the money raised by the ELR

Makes my blood boil how companies especially in the construction trade seem to just go bust at a whim and then mysteriously restart leaving sub contactors suppliers and customers all out of pocket

It must be devastating for the trustees and volunteers hand over hard raised cash and see it lost the next day

http://www.manchestereveningnews.co...ws/east-lancs-railways-100000-project-9032947

A popular steam railway’s bid to restore an iconic station to its former glory has been dealt a devastating blow.

Bosses at the East Lancashire Railway paid £18,000 for key materials to a company just a day before it went into administration.

The cash, donated by fundraisers over three years, was for specialist roof glazing to rebuild the Victorian-style canopy on platform two of the ELR’s station on Bolton Street in Bury.

PaperlinX UK, based in Moulton Park, Northamptonshire, went into liquidation alongside principal trading company Robert Horne Group Ltd with the loss of dozens of jobs earlier this month. Business advisory firm Deloitte has been appointed joint administrators.

The heritage railway however had paid the sum to Robert Horne Group Ltd and bosses were only alerted to the problem when their calls went unanswered.

The railway’s general manager, Andy Morris, said the £100,000 project to restore the canopy was now in ‘serious jeopardy’.

Bosses are taking legal advice but say early indications suggest that they will not see either the glazing delivered or the £18,000 payment returned.

Mr Morris said: “We’re absolutely devastated by what’s happened and we’re still struggling to come to terms with what this will ultimately mean for the future of the canopy project. The sum of money involved is very substantial for a charity such as ours and it is particularly upsetting bearing in mind the funds were raised through donations and other benefactions.

“We shall be taking legal advice about what rights we have in circumstances such as this but at the moment it doesn’t look very encouraging. We also need to see what options are open to us in terms of keeping the project on-track and for completion by mid-July, as raising a similar amount of cash to that we’ve already paid out is going to be a tall order.”

fundraising appeal was launched three years ago. The main structure of the canopy has been already been built, but there is no roof.

Mr Morris issued a fresh appeal for financial help and added: “one thing is for sure, our volunteer workforce will do everything within their power to ensure the job gets done.

“We’re obviously now looking for further financial support and we’d be very grateful for any donations.”

The East Lancashire Railway operates the 12 mile-long restored former main line route between Heywood and Rawtenstall in Rossendale using steam and diesel engines. Run by volunteers, it attracts more than 158,000 visitors every year. Visit www.eastlancsrailway.org.uk .

 

[alexl92]

I saw this. I feel like it was pretty naughty of them to take the cash and just go bust. Hopefully the ELR will get it back somehow.

 

[Bullfield WEst]

I saw this. I feel like it was pretty naughty of them to take the cash and just go bust. Hopefully the ELR will get it back somehow.

I don't think there is much chance of that but it did prompt me into becoming a member. Hope others do the same to offset their losses.

 

[Jonfun]

Just on an aside, and in no way intending to devalue the contribution you make, if anyone is planning to donate towards the ongoing canopy work specifically, it's best to donate directly to the ELR company rather than the ELR Preservation Society, as money given to the society funds their activities such as the society magazine and events, with the surplus going towards contributions to the ELR Company's projects. I'm unsure of how much money the society have contributed to the canopy project thus far and how much they intend to do so now. Of course, by joining the society as a member you could then go to become a volunteer and help out by giving a little bit of your free time

 

[Bullfield WEst]

Just on an aside, and in no way intending to devalue the contribution you make, if anyone is planning to donate towards the ongoing canopy work specifically, it's best to donate directly to the ELR company rather than the ELR Preservation Society, as money given to the society funds their activities such as the society magazine and events, with the surplus going towards contributions to the ELR Company's projects. I'm unsure of how much money the society have contributed to the canopy project thus far and how much they intend to do so now. Of course, by joining the society as a member you could then go to become a volunteer and help out by giving a little bit of your free time

Thanks for the information and advice. I do look forward to some involvement in the near future. More so than in the past as a volunteer Cask emptier in the Trackside.

 

[Jonfun]

Of course, there's no reason you can't do both...

 

[Signalmans Eye]

I donated a few days ago on the big give.org.uk see east lancs website and goes directly to appeal

 

[Elecman]

The only company getting anything here is the leech Deloittes they get first call on any money even before HMRC!! When Jarvis went bust there was no money to pay the redundant staff their outstanding wages but sufficient money to pay Deloittes several million quid in their charges ( over £500 per hour for a clerk never mind the superiors on several thousand an hour) so I doubt ELR will see any of their money back. Thier best hope is that someone like Pilkingtons or St Gobain donate the equivalent amount of glass panels for free.

 

[Aldaniti]

Even a casual glance of this company's accounts would suggest that they have been experiencing problems for some time. I'd be very wary of handing over £18k in advance to an established company, with turnover in the millions, and which has been making losses for the last few years.

 

[Jonny]

Even a casual glance of this company's accounts would suggest that they have been experiencing problems for some time. I'd be very wary of handing over £18k in advance to an established company, with turnover in the millions, and which has been making losses for the last few years.

Agreed, just looking at Robert Horne Group Ltd - the business that ELR was actually dealing with - the writing was on the wall - or in the accounts.

I found a link here with the details (requires free login to see some parts) http://companycheck.co.uk/company/00584756

 

[Xenophon PCDGS]

Agrred, just looking at Robert Horne Group Ltd - the business that ELR was actually dealing with - the writing was on the wall - or in the accounts.

I found a link here with the details (requires free login to see some parts) http://companycheck.co.uk/company/00584756

The last memories that I have of the Robert Horne papermaking company is around the early 1990's, when the family sold the business to Buhmann-Teterode, a company based in the Netherlands.

 

[47513 Severn]

The Robert Horne of today was part of Paperlinx UK which has collapsed. Paperlinx UK was part of the multinational Australian owned Paperlinx group. You can read more here:
http://www.printweek.com/print-week...ppointed-at-paperlinx-uk-most-branches-closed

As you will see in the comments there is much blaming of the management and owners etc. but the reality is there is massive over capacity in the UK print and paper business. Something like this was inevitable although such a large player going down has taken many by surprise. There is now a short term shortage of paper which hopefully should see off a few of the bad paying chancers and phoenix companies that have been the blight of the print business for the last few years. The Paperlinx Benelux operation has also collapsed in the last week, it is very much a European problem.

It is extremely unlikely whoever the ELR were dealing with (probably one of the 700+ who have lost their jobs) had a clue this was in the pipeline. It is certainly not a case of a shady outfit taking their money and running. One positive note is that the administrators say there has been considerable interest in the specialist divisions of the group. As glazing materials were far from the core Paperlinx business I guess the ELR were dealing with one of the specialists.

47513