More than 250 jobs lost at North East engineering firm Owen Pugh as all but one arm of the company ceases trading

Owen Pugh Credit: ITV Tyne Tees

It has been confirmed that 257 people at North East construction firm Owen Pugh have been made redundant.

The announcement comes after administrators failed to find a buyer for the civil engineering arm of the company.

Owen Pugh has around 300 employees across 5 sites:

  • The company's HQ in Dudley

  • Cramlington

  • Blaydon

  • Stockton-on-Tees

  • Outskirts of Sunderland

Owen Pugh Credit: ITV Tyne Tees

Administrators Grant Thornton UK LLP were called in on Monday 9 October

Cash flow problems are being blamed for pushing the engineering firm into administration.

The company is currently involved in helping to build an ambitious road scheme involving a triple-decker roundabout at the Silverlink Junction in North Tyneside.

Work is underway on a triple-decker roundabout at the Silverlink Junction Credit: ITV Tyne Tees

The Highways Agency has confirmed that work there will not be affected.

In a statement the administrators say 30 jobs at the Owen Pugh Aggregates branch of the firm are safe for the time being while work continues to find a buyer for the branch of the company.

Owen Pugh Aggregates is the part of the company that operates Marsden Quarry near Sunderland.

Owen Pugh Credit: ITV Tyne Tees

The statement, however, goes on to confirm that the civil engineering arm of the group was no longer viable

A further nine employees have been retained at the Group’s head office in the short term to assist the Joint Administrators.