Allenbuild to close regional office in Wigan as parent company shuts northern business

Sixty jobs are to go at contractor Allenbuild’s regional office in Wigan, following the decision of parent company Renew to scale back operations in the north.

Renew announced yesterday it was exiting its northern operations, in a move that will hit its turnover by £60m but not dent its profits.

Renew finance director John Samuel told the Manchester Evening News that 60 staff had been put on redundancy notice, with all of the staff likely to lose their jobs when current work ends in July.

He said: “The dynamics of the marketplace for this type of work are unlikely to change for some time. Public sector spending cuts are a factor.

“It is very disappointing, but it is unviable to continue supporting a business that is unable to secure tenders at a profitable level.”

Allenbuild, which is based in Nottingham, earned revenues of £89m last year, of which £25m were from the Wigan office.

However, Samuel said the northern division of the business had traded at a loss.