A DEESIDE that has gone into administration has come at a 'very bad time for employees', an MP has said.

Mark Tami MP for Alyn and Deeside, has commented on the collapse into administration of Staveley Head Limited.

The insurance firm employed 85 people at its Connah’s Quay headquarters, and it is understood that approximately 60 have been made redundant with immediate effect after administrators were called in yesterday.

The Leader:

MP Mark Tami

Mr Tami said: “It’s concerning that a valued local business has been placed into administration and that a number of jobs have been lost. I understand that a redundancy consultation had begun prior to the company entering administration after an underwriting contract was cancelled so this was not a bolt from the blue, but it has come at a very bad time for employees.

“I trust the administrators will be working to stabilise the business and retain as many jobs as possible. In the meantime, my office stands ready to help in any way we can.”

The Leader previously reported that dozens of employees had been left in tears after the devastating news they had lost their jobs.

Many were told to leave the premises with 'immediate effect' on February 5, with one former employee adding: "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?"

The majority of the Company’s insurance policies are underwritten by a Danish insurer, which has recently encountered solvency issues, leading to an early and unexpected termination of the contractual arrangement which was in place.

Steven Muncaster, Joint Administrator, said: “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.

“Since then the Directors of the business have been working with advisors to either secure an alternative insurer or a purchaser. Unfortunately, due to the specialist nature of the business, these outcomes have not been achieved and the Company has now entered Administration.

“As a result, 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.”