Shocked staff in tears over sudden Staveley Head administration

Former Staveley Head workers have been left distraught after the broker MGA went into administration earlier this month.

The business made more than 60 of its 85 employees redundant on 5 February when it was placed under administration.

One former worker told The Leader, part of the same media group as Insurance Times, that the staff were told that their jobs would be subject to a consultancy process, but just one week later were told to leave the building.

Staveley employed a large number of people in the town of Connah’s Quay, North Wales.

“We received the letter in January to say we would be going through a consultation period, but they have shut the doors on us now”, said the ex-employee.

“It’s all a sham. We were not expecting the redundancy consultation letter, but it was not a surprise, but none of us were expecting this. This has come as a complete shock.

“Hopefully there is work out there for a 46-year-old. I’ve worked there for three years but there are staff who worked there for eight years and they are all in tears.

“We all feel like we have been let down by the company who have gone into the ground. No-one explained anything to us, we were supposed to have consultations and now they have pulled the administration card.

“It’s incredibly upsetting to lose your job, especially through what seems to be a combination of Internally managed decline and of the impact of Brexit (Sterling Exchange rate) on the liquidity of Danish insurers.”

The news of the company’s demise was delivered by its appointed administrator  Duff & Phelps, which said that Staveley Head Limited was engaged in a three-year contract with its main insurer, which was prematurely terminated in November 2019 as a result of the insurer’s financial issues.

”This led to an overnight loss of the majority of Staveley Head Limited’s business.

“As a result [of the administration], it is with regret that the majority of staff have been made redundant and we are now working closely with management to secure a sale of the remaining business and/or its book. We encourage any interested parties to come forward as soon as possible.”

Payments

Companies House records also showed that Staveley Head recently paid a £2m dividend to its holding company Gelert Group.

In addition, the filing showed that dividends of £600,000 were paid to the directors.

Meanwhile, local MP Mark Tami raised concerns about the payments.

In statement sent to Insurance Times, he said: “The suggestion that dividends amounting to significant sums may have been paid by Staveley Head shortly prior to entering administration is concerning.

”I have contacted the company and will be asking further questions about these payments. Whenever a company enters administration it is my view that shareholders have a clear moral responsibility to ensure wherever humanly possible that their staff are not left high and dry.”

Tears

A man whose daughter lost her job at Staveley said: “My daughter-in-law is buying a house with my son and this is not going to help at all.

“She has worked there for five years and she was quite happy to take her redundancy pay to keep her afloat while she looked for a new job but now, they’ve said they can’t pay any redundancy pay. It’s disgusting, she phoned me in tears.

“They are stabbing young people in the back and people with families. They have to go for a government grant now, why should the taxpayer pay for the company’s mistakes?”

Another former employee said it was “completely atrocious. They have ruined lives.”