News

Steve to Debate Administrations

(November 26, 2013)

Steve in Westminster

Walton MP Steve Rotheram will lead a debate in parliament on Wednesday evening on administration and insolvency.

Mr Rotheram’s debate comes after the Trigon Snacks factory in Walton was almost lost in September.

Steve explained, “Trigon Snacks was a successful business that had produced nuts for major brands from the Walton factory since the seventies.

“In September, they were hours away from a German asset stripper buying the business; making all the staff redundant, selling off of the plant and machinery and transferring the brand production to Germany.

“Trigon isn’t an isolated incident. It is indicative of what is happening every single week, all over the country. This can’t be right and I want the government to look to remedy the situation.

“The purpose of my debate is to urge the minister to look to include a mandatory requirement for administrators to consider the social consequences of bids they receive when a company goes into administration.

“At present, administrators are obligated to accept the bid which realises the highest return for creditors. There is no discretion to consider whether an individual bid might save more jobs and keep people in work, or which might save the taxpayer money in resultant benefits from any closure. In other words, as things stand, administrators are accepting the highest bid but they aren’t always accepting the best bid”.

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