Clugston Group

The company has its origins in the business endeavours of Leonard Clugston; in 1922, Leonard established JG Clugston Ltd, which operated as a builders’ merchants, timber, transport, and joinery. Two years later, Leonard was approached with an offer to work one of the slag banks (a waste material produced by the blast furnaces of Scunthorpe’s numerous iron and steel plants) with the intention of using the material in local road construction for the town. He quickly recognised that the material had considerable potential that nobody else appeared to be interest in; accordingly, in 1937, he founded a new company, Clugston Cawood, for the purpose of exploiting it.{{cite web |url = https://thelincolnite.co.uk/2015/11/john-clugston-a-lifetime-of-achievement/ |title = John Clugston: A lifetime of achievement |website = thelincolnite.co.uk |first = Sarah |last = Harrison-Barker |date = November 2015}}

The company's early activities centered around its pioneering work in the development and use of recycled slag into various building materials.{{cite web |url = http://www.clugston.co.uk/group/about-group/our-history.php |archive-url = https://web.archive.org/web/20081202185119/http://www.clugston.co.uk/group/about-group/our-history.php |url-status = dead |archive-date = 2 December 2008 |publisher = Clugston Group |date = 1 July 2024 |title = Clugston Group - About Us | Our History }} Amongst other roles, this material was used in the construction of runways for the Royal Air Force (RAF) in the Second World War. The company undertook various civil engineering works throughout the conflict, taking on straightforwarding contracting work for the most part, such as the construction of air raid shelters and anti-glare pits as well as the erection of poles in large fields to stop enemy gliders landing as part of the anti-invasion preparations on the east coast.{{cite news |url=https://www.yorkshirepost.co.uk/business/profile-steve-radcliffe-1-4339422 |title=Profile: Steve Radcliffe |newspaper=Yorkshire Post |date=13 March 2012 |access-date=4 February 2018}}

Throughout the latter half of the twentieth century, Clugston focused on the construction, transportation, and the provision of bulk services to some of Britain’s largest companies. The company continued to work with various steelworks, both domestic ones and those in France and Germany. Numerous steelworks closed over time, necessitating changes at the firm. While the company's management recognised that the construction sector was particularly vulnerable during economic downturns, it was decided to increasingly orientate towards this sector over its other activities.

Clugston Group was involved in the construction of various public facilities, including schools, hospitals, reservoirs, and supermarkets. One frequent area of business was road construction; it would regularly receive contracts from bodies such as the Department of Transport to build bypasses and other schemes of a similar scale.{{cite web |url = https://www.constructionnews.co.uk/sections/news/20apr90-uk-clugston-wins-new-contracts-worth-18m-19-04-1990/ |title = 20Apr90 UK: CLUGSTON WINS NEW CONTRACTS WORTH £18M |website = constructionnews.co.uk |date = 19 April 1990 }}{{cite web |url = https://www.constructionnews.co.uk/sections/news/17dec92-uk-contract-immingham-humberside-clugston-construction-group-17-12-1992/ |title = 17Dec92 UK: CONTRACT – IMMINGHAM, HUMBERSIDE; CLUGSTON CONSTRUCTION GROUP |website = constructionnews.co.uk |date = 17 December 1992 }} The firm was also involved in the construction of numerous waste-to-energy plants.{{cite web |url = https://www.constructionenquirer.com/2012/10/24/clugston-secures-fifth-major-energy-from-waste-plant/ |title = Clugston secures fifth major energy from waste plant |website = constructionenquirer.com |date = 24 October 2012 |first = Aaron |last = Morby}}{{cite web |url = https://www.letsrecycle.com/news/viridor-appoints-contractors-for-avonmouth-erf/ |title = Viridor appoints contractors for Avonmouth ERF |website = letsrecycle.com |date = 6 April 2017}}{{cite web |url = https://www.constructionnews.co.uk/sections/news/welcome-to-leeds-efw-facility-forms-huge-living-wall-landmark-29-09-2014/ |title = Welcome to Leeds: EfW facility forms huge living wall landmark |website = constructionnews.co.uk |date = 29 September 2014 |first = DANIEL |last = KEMP}} It also constructed various offices and factories on behalf of various parties.{{cite web |url = https://www.theconstructionindex.co.uk/news/view/clugston-makes-office-block-from-containers |title = Clugston makes office block from containers |website = theconstructionindex.co.uk |date = 6 March 2012}}{{cite web |url = https://bdaily.co.uk/articles/2018/09/10/work-underway-on-39m-sport-and-exercise-science-facility-at-newcastle-university |title = Work underway on £39m sport and exercise science facility at Newcastle University |website = bdaily.co.uk |first = Richard |last = Bell |date = 10 September 2018}}{{cite web |url = https://ccemagazine.com/news/success-in-the-north-east/ |title = Success in the North-East |website = ccemagazine.com |date = 7 September 2017}}{{cite web |url = https://www.constructionnews.co.uk/sections/news/clugston-factory-16-07-1998/ |title = Clugston factory |website = constructionnews.co.uk |date = 16 July 1998}} It also built retail outlets and distribution centres.{{cite web |url = https://www.theconstructionindex.co.uk/news/view/clugston-to-build-60m-sheffield-ikea |title = Clugston to build £60m Sheffield Ikea |website = theconstructionindex.co.uk |date = 19 October 2016 }}{{cite web |url = https://constructionmaguk.co.uk/clugston-chosen-by-kia-to-extend-distribution-facility-at-stallingborough/ |title = Clugston chosen by Kia to extend distribution facility at Stallingborough |website = constructionmaguk.co.uk |date = 22 March 2019}} The company also undertook several projects of an unconventional nature.{{cite web |url = https://www.constructionenquirer.com/2017/11/21/clugston-to-start-1-2bn-lincolnshire-lakes-project/ |title = Clugston set to start £1.2bn Lincolnshire Lakes project |first = Aaron |last = Morby |date = 21 November 2017}}{{cite web |url = https://www.theconstructionindex.co.uk/news/view/uks-largest-timber-structure-erected-in-leeds |title = UK's 'largest timber structure' erected |website = theconstructionindex.co.uk |date = 3 September 2014}}

In June 2009, the then company CEO Stephen Martin went 'undercover' at the company for the television series of Channel 4, Undercover Boss.{{cite web |url = http://blog.managers.org.uk/post/Stephen-Martin-undercover-at-Clugston-Group-1516.aspx |title = Stephen Martin undercover at Clugston Group |website = blog.managers.org.uk |archive-url=https://archive.today/20120707061054/http://blog.managers.org.uk/post/Stephen-Martin-undercover-at-Clugston-Group-1516.aspx |archive-date=7 July 2012 }} Martin described the experience as extremely positive, and implemented a number of new measures as a result.{{cite web |url = https://www.belfasttelegraph.co.uk/business/undercover-boss-aims-to-build-on-experience/28483941.html |title = Undercover boss aims to build on experience |publisher = belfasttelegraph.co.uk |first = Lindsay |last = Fergus |date = 23 June 2009}}

During the late 2000s, business activity dipped, which was attributed to the unfavourable economic consequences of the Great Recession; the company responded with 200 redundancies. By 2013, Clugston Group had apparently reversed its fortunes, having achieved record profits along with a 30 per cent rise in turnover.{{cite web |url = https://www.constructionnews.co.uk/sections/news/clugston-celebrates-75th-year-with-record-profits-06-06-2013/ |title = Clugston celebrates 75th year with record profits |website = constructionnews.co.uk |date = 6 June 2013 |first = LUKE |last = CROSS}} Further revenue growth occurred during subsequent years.{{cite web |url = https://www.grimsbytelegraph.co.uk/news/local-news/record-turnover-scunthorpe-construction-giant-1853255 |title = Record turnover for Scunthorpe construction giant Clugston Group as restructure ensures sustainable future |website = grimsbytelegraph.co.uk |first = David |last = Laister |date = 2 August 2018}}

In February 2017, Martin left to become director general of the Institute of Directors, and was replaced by Bob Vickers (formerly a director of Carillion Construction Services). Vickers resigned as CEO in June 2019; Glynn Thomas became interim CEO.{{cite news |title=Clugston CEO moves on |url=https://www.theconstructionindex.co.uk/news/view/clugston-ceo-moves-on |accessdate=8 July 2019 |work=The Construction Index |date=8 July 2019}}

On 5 December 2019, the company filed a notice of intention to appoint administrators from KPMG,{{cite news |last1=Morby |first1=Aaron |title=Clugston files for administration |url=http://www.constructionenquirer.com/2019/12/05/clugston-files-for-administration/ |access-date=6 December 2019 |work=Construction Enquirer |date=5 December 2019}}{{cite web |url = https://www.business-live.co.uk/commercial-property/shock-administrators-set-appointed-clugston-17372555 |title = Shock as administrators set to be appointed at Clugston Construction |website = business-live.co.uk |first = David |last = Laister |date = 5 December 2019}} for Clugston Group Ltd, Clugston Construction Ltd and Clugston Services Ltd.{{cite news |title=Administrators lay off 150 at Clugston |url=https://www.theconstructionindex.co.uk/news/view/administrators-lay-off-150-at-clugston |access-date=9 December 2019 |work=The Construction Index |date=9 December 2019}} The group reportedly collapsed owing over £40m (a figure later revised to £64m),{{cite news |last1=Prior |first1=Grant |title=Clugston went down owing supply chain £64m |url=https://www.constructionenquirer.com/2020/02/06/clugston-went-down-owing-supply-chain-64m/ |access-date=6 February 2020 |work=Construction Enquirer |date=6 February 2020}} and was operating from over twenty five sites primarily across the Midlands and northern England.{{cite news |last1=Morby |first1=Aaron |title=Clugston debt rumoured at over £40m |url=https://www.constructionenquirer.com/2019/12/09/clugston-debt-rumoured-at-over-40m/ |access-date=9 December 2019 |work=Construction Enquirer |date=9 December 2019}} Some 250 employees were reportedly set to lose their jobs immediately.{{cite news |last1=Laister |first1=David |title=Clugston Construction collapses with hundreds of staff facing redundancy before Christmas |url=https://www.grimsbytelegraph.co.uk/news/grimsby-news/clugston-construction-collapses-hundreds-staff-3614189 |access-date=6 December 2019 |work=Grimsby Live |date=5 December 2019}} The group's losses were attributed to a combination of problematic waste-to-energy contracts and an "acute cash flow issue" that had been exacerbated by the June 2019 failure of a key subcontractor which resulted in "significant ransom positions from the supply chain".{{cite web |url = https://www.constructionnews.co.uk/financial/administrations/revealed-clugstons-supply-chain-ransom-that-led-to-collapse-06-02-2020/ |title = Revealed: Clugston's supply chain ransom that led to collapse |website = constructionnews.co.uk |date = 6 February 2020 |first = MEGAN |last = KELLY }}

400 of Clugston Group's 629 strong workforce were employed in construction, and, on 9 December 150 were reported to have been made redundant. By 7 January 2020, the number of redundancies at the firm had grown to 280; 15 staff working on three facilities management contracts had been transferred to new employers, while 51 staff were assisting the administrators.{{cite news |last1=Morby |first1=Aaron |title=Clugston job toll hits 280 as axe swings again |url=https://www.constructionenquirer.com/2020/01/07/clugston-job-toll-hits-280-as-axe-swings-again/ |access-date=7 January 2020 |work=Construction Enquirer |date=7 January 2020}}

The company had grown through participation, via a partnership with France's CNIM, in the construction of numerous waste-to-energy plants; such projects had also caused financial problems for other contractors in the United Kingdom, including Costain and Interserve.{{cite news |title=Clugston falls into administration |url=https://www.theconstructionindex.co.uk/news/view/clugston-falls-into-administration |access-date=6 December 2019 |work=The Construction Index |date=6 December 2019}} CNIM took on sixty seven former employees of Clugston, who had been working on joint venture projects in the United Kingdom.{{cite news |title=Clugston staff taken on by French JV partner |url=https://www.theconstructionindex.co.uk/news/view/clugston-staff-taken-on-by-french-jv-partner |access-date=19 December 2019 |work=The Construction Index |date=19 December 2019}}

The group was organised into five divisions:{{cite web |url = http://www.clugston.co.uk/group/about-group/our-structure.php |title = Our Structure |publisher = Clugston Group |archive-url=https://web.archive.org/web/20081202185655/http://www.clugston.co.uk/group/about-group/our-structure.php |archive-date=2 December 2008}}

• Construction
• Facilities management
• Logistics
• Private Finance
• Property

The administration of December 2019 mainly concerned Clugston's construction related operations. Clugston Distribution Services was sold in January 2020, to Leicester-based AJWG.{{cite news |last1=Morby |first1=Aaron |title=Clugston administrators sell haulage business |url=https://www.constructionenquirer.com/2020/01/28/clugston-administrators-sell-haulage-business/ |access-date=29 January 2020 |work=Construction Enquirer |date=28 January 2020}} The Clugston Estates property business continued to trade until 3 February 2020, then also entered administration.{{cite news |title=Appointment of Administrators |url=https://www.thegazette.co.uk/notice/3484623 |access-date=8 February 2020 |work=The Gazette |date=3 February 2020}}

{{reflist|30em}}

• [http://www.clugston.co.uk/ Official site]
• [http://www.clugston.co.uk/logistics Official site]

{{Construction industry in the United Kingdom}}

Category:Construction and civil engineering companies of England

Category:Companies based in Scunthorpe

Category:Construction and civil engineering companies established in 1937

Category:1937 establishments in England

Category:Real estate companies established in 1937

Category:British companies established in 1937

Category:British companies disestablished in 2019