ONE of Scotland’s biggest coal companies has collapsed into administration with the loss of 22 jobs after business was hit by the closure of Longannet Power Station. But the assets and business of its distribution and wholesale arms have moved to a new owner.
Fergusson Coal, founded in 1926 by Thomas Henry Fergusson, had seen its finances severely impacted by the long term structural decline of the coal power generation market.
The company, owned by brothers Tom and Alan Fergusson, had reported a £5.9 million loss in February as it grappled with that decline and lower prices.
Blair Nimmo, Tony Friar and Neil Gostelow of KPMG were appointed joint administrators to Fergusson Group and its subsidiaries yesterday. However they immediately struck a deal to sell Fergusson’s core business, which supplies coal to consumers, retailers and merchants in the UK, to Sheffield-based CPL Industries.
The acquisition safeguards 67 jobs across the Fergusson’s eight depots in Scotland, as well as three staff at a site in Larne and nine in Carlisle. The 22 job losses include 13 at Fergusson’s main site in Hunterston, Ayrshire, and nine at its head office in Stirling.
Tom and Alan Fergusson will remain with the business and manage the rump of the Fergusson operations. It is understood the Fergusson name will be retained and the Fergusson brothers will not have a stake in CPL.
Tony Minett, chief executive at CPL, said: “Fergusson has a proud 90-year history and we look forward to developing the business in the future.”
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