Up to 60 Hull jobs at risk as waste management firm closes
Colt was bought by Augean in May 2016
By Hull Daily Mail | Posted: 17 May 2018
Sixty jobs could be at risk in Hull as a specialist waste management business announces plans to close its Hull division.
Colt Industrial Services has “not provided the positive improvement required” since being bought out by Augean just two years ago.
The business, on the Colt Business Park in Witty Street, off Hessle Road, is believed to have incurred a £600,000 loss so far this year.
Augean said in a statement: “The income statement impact of closure of the Hull site and any associated redundancy costs could be approximately £1.6m, with net cash receipt expected of £1.3m.
“The Colt operation is expected to be classified as a discontinued operation for both the half and full year accounts and will include the loss to date of £0.6m as well as the potential closure cost of £1.6m.”
Colt has been based in Hull for 25 years. The company currently works in industries including rail, offshore, military and utilities, providing a range of services such as high pressure and tank cleaning, waste management and spillage response.
Colt Holdings was bought by Augean in May 2016, in a deal that could have been worth almost £14m.
Augean has now announced however that a consultation has been launched with staff on the closure and feared sale of the offices in Hull.
If the closure goes ahead, as many as 60 staff could be affected.
Augean also said it did not believe Colt Holdings – which runs Colt Industrial Services – has “the potential to generate appropriate returns in the medium term.”
The consultation process is expected to take up to a month, with a decision therefore being expected in June on the future of the Hull company.
Augean is headquartered in Wetherby, and operates from more than 12 sites across the UK.
The takeover deal in 2016 involved a number of advisors, including Hull’s Andrew Jackson Solicitors and Walker Morris LLP.
Colt Industrial Services runs a fleet of more than 40 vehicles, and works across the UK.