Pre-pack deal leaves majority of staff without two-months鈥 wages
Staff at architect YRM have been left with thousands of pounds in unpaid wages after it emerged the company entered a pre-pack administration hours before being taken over by RMJM
Accountant Chantrey Vellacott DFK was appointed administrator on 23 December and RMJM took over the practice later that day.
The deal saw around 20 people lose their jobs 48 hours before Christmas with most owed two months鈥 pay. Just five YRM staff have been offered roles at its new owner, including former chief executive John Clemow, who is now a principal at RMJM.
The 67-year-old practice, which has been working on designs for a nuclear power station at Hinkley in Somerset, went into administration under a controversial 鈥減re-pack鈥 which allows the purchaser to buy parts of a company and leave the firm鈥檚 debts with the administrator.
One ex-employee said: 鈥淲e have not been paid since October. We鈥檝e been given the runaround by directors who said we would be paid by the middle of November. It鈥檚 been a deliberate tactic to avoid staff breaking their silence before the senior staff could salvage their careers at a new company.鈥
Chantrey Vellacott DFK declined to comment but Clemow said YRM was in administration and admitted: 鈥淲e approached RMJM [about a takeover].鈥
Clemow declined to confirm the arrangement of a pre-pack, and repeated earlier claims that the company had been brought to its knees by the cost of closing its offices in Vienna and Bucharest and falling workloads.
But ex-staff blamed management for a series of poor decisions. 鈥淭his situation was almost inconceivable a year ago as YRM had a number of good prospects and a very successful and growing energy sector,鈥 one told BD magazine.
鈥淚t seems incredible that the very people who led YRM into this would be the ones continuing their employment.鈥
Another blamed the decision to open overseas offices, claiming the Vienna branch 鈥減ulled in no work whatsoever鈥. The source added: 鈥淭he directors were on high wages and weren鈥檛 bringing in the work.鈥
YRM director Iain Macdonald has now been made principal at RMJM while associates James Thomas, project leader at Hinkley, and Peter Greiner plus architect Adrian Wiehahn will form a new London studio called YRM Lab.
RMJM chief executive Peter Morrison said YRM was a leader in aviation, nuclear and technology projects and added: 鈥淚t significantly strengthens RMJM鈥檚 offer.鈥
A version of this story appeared first at 好色先生TV鈥檚 sister publication BD.
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