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25
Nov 2021
CNG staff expected to be made redundant tomorrow
Staff at the collapsed Harrogate energy firm CNG Group are expected to be formally made redundant on Friday.
A meeting was held this morning between around 100 staff members, CNG management and Interpath, the financial advisory company that is expected to be appointed as administrators tomorrow.
CNG's chief executive Paul Stanley told the Stray Ferret that the majority of staff will be made redundant once Interpath is appointed.
Around 40 people will continue working to help wind the company down, a process that is expected to take several weeks.
An anonymous source at the meeting told the Stray Ferret that "everyone is very sad" about the end of the company.
Staff have been paid for November but are not expected to be offered a redundancy settlement until after Christmas through a government scheme. The source said it was a "stressful time to have no income."
Read more:
- CNG employees in ‘horrible situation’ regarding redundancy payouts
- Ofgem appoints company to take on CNG customers
- In Depth: Why Harrogate success story CNG ended in collapse
Mr Stanley, CNG's CEO, said the company has had regular online meetings with staff since September 14 to discuss the future of the company.
He said:
For the majority of its 27 years, CNG was regarded as a Harrogate success story.
Mr Stanley said the reason CNG failed was that four of its main customers went out of business within two weeks, leaving it with unpaid bills.
Attempts to raise capital or sell the business were not successful due to continued market volatility and high prices in the energy sector.
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