DOZENS of employees have been left ‘in tears’ after the devastating news they have lost their jobs.

Many former employees of Staveley Head Limited, based in Connah’s Quay, contacted the Leader to say they were told to leave the premises ‘with immediate effect’ on February 5.

One former employee said they were given a redundancy consultation which was to begin at the end of January, but one week later were told the company had gone into administration.

He added: “We received the letter in January to say we would be going through a consultation period, but they have shut the doors on us now.

“Dozens of staff went in to work today and were told to leave the premises with immediate effect. It’s all a sham. We were not expecting the redundancy consultation letter, but it was not a surprise, but none of us were expecting this. This has come as a complete shock.

“Hopefully there is work out there for a 46-year-old. I’ve worked there for three years but there are staff who worked there for eight years and they are all in tears.

“We all feel like we have been let down by the company who have gone into the ground. No-one explained anything to us, we were supposed to have consultations and now they have pulled the administration card.

“It’s incredibly upsetting to lose your job, especially through what seems to be a combination of Internally Managed Decline and of the impact of Brexit (Sterling Exchange rate) on the liquidity of Danish insurers.”

Steven Muncaster and Sarah Bell, both of Duff & Phelps, have been appointed Joint Administrators of Staveley Head Limited (“the Company”) on February 5 2020.

Established in 1993, Staveley Head Limited is a provider of niche insurance products for businesses and individuals. From its beginnings as a provider of car and home insurance, its broad product range now includes taxi insurance, motor trade insurance, HGV insurance, courier insurance, van insurance, motorhome insurance and campervan insurance.

Andy Foster, whose daughter-in-law lost her job said: “My daughter in law is buying a house with my son and this is not going to help at all.

“She has worked there for five years and she was quite happy to take her redundancy pay to keep her afloat while she looked for a new job but now, they’ve said they can’t pay any redundancy pay. It’s disgusting, she phoned me in tears.

“They are stabbing young people in the back and people with families. They have to go for a government grant now, why should the taxpayer pay for the company’s mistakes?

“She’s devastated and these people just don’t care. This has a knock-on effect; it doesn’t just affect the people being made redundant but the families they provide for. They were told to keep it all secret and not speak to anyone about it.”

Another person who lost their job added: “It’s completely atrocious. They have ruined lives.”

Staveley Head Limited has built up a reputable and profitable business since its inception and employs 85 people at its offices in Deeside, Wales.

The majority of the Company’s insurance policies are underwritten by a Danish insurer, which has recently encountered solvency issues, leading to an early and unexpected termination of the contractual arrangement which was in place.

Steven Muncaster, Joint Administrator, said: “Staveley Head Limited was engaged in a three-year contract with its main insurer, which was prematurely terminated in November 2019 as a result of the insurer’s financial issues. This led to an overnight loss of the majority of Staveley Head Limited’s business.

“Since then the Directors of the business have been working with advisors to either secure an alternative insurer or a purchaser. Unfortunately, due to the specialist nature of the business, these outcomes have not been achieved and the Company has now entered Administration.

“As a result, it is with regret that the majority of staff have been made redundant and we are now working closely with management to secure a sale of the remaining business and/or its book. We encourage any interested parties to come forward as soon as possible.”