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Erinaceous jobs protected by sell off

The residential management and property maintenance divisions of crisis hit Erinaceous Group have been sold.

The two divisions are now under the control of Erinaceous’ banks which also took over the management of Erinaceous Insurance Services last week.

Administrators were called in after the group failed to come up with a rescue package to tackle £225 milllion worth of debts.

Jjoint administrators Jim Tucker and Myles Halley of KPMG LLP said the latest deals should protect the jobs of around 1,800 employees.

Mr Tucker said: “We have successfully managed to secure the future of these three strongly performing subsidiaries with little or no impact on employees or customers.”

A further 15 separate sales across Erinaceous’ other divisions have also been confirmed by the administrators.

Within the Building Consultancy division seven separate businesses have been sold back to management with a total of 322 employees transferring to the purchasers. 

The administrators said a small number of employees had been retained to assist with the transition, but it had been necessary to make 155 employees redundant.

Mr Tucker said: “Although there have been 546 redundancies across parts of the Group, we have worked extremely hard to complete deals that would protect as many employees from this as possible.

“As a result more than 2,500 jobs have been saved through sales of various businesses and divisions or keeping key parts of the Group outside of the administration process.

'This has enabled us to maximise the value of the assets under out control and avoid any significant disruption to customers and clients.”

“Our attention is now focussed on realising the remaining assets within the Group.'