Wellingborough park homes company Tingdene Homes goes into liquidation as staff told 'register as unemployed'
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Employees at Wellingborough-based Tingdene Homes Ltd have been told they should immediately register as unemployed after the firm went into liquidation.
The future of the park homes manufacturing business in Bradfield Road had been up in the air following the filing of a winding up petition at the High Court.
Tingdene Homes Limited had been named as the litigant in a winding up petition submitted to the court by Edmundson Electrical Limited – the UK’s largest electrical distributor.
But in a letter to employees from FRP Advisory Trading Limited fears that the company would be saved were dashed with confirmation that the business would stop operating.
The letter addressed ‘dear employee’ said: “I have been instructed by the director of the company (Tingdene Homes Ltd) to assist them in placing the company into liquidation.
“In this regard, I regret to advise you that the company is no longer in a position to make payments for services rendered by you under its contract of employment with you.
"You should therefore regard your service as terminated, as from December 5, 2023, and accordingly you should immediately register as unemployed with your local Jobcentre Plus Office, as failure to do so may jeopardise any benefits you may be entitled to receive.”
Employees were warned that under the insolvency provisions of the Employment Rights Act 1996, any claims they may have for unpaid wages, accrued holiday, redundancy or payment in lieu of notice may, subject to certain limitations, be paid by the Redundancy Payments Service out of the national insurance fund.
The formal appointment of the liquidator is due to be December 21.
Liquidation means to shut down the business so that the business stops operating and sells its assets in order to pay its debts; insolvency means that a business goes into administration to help sort out its options to stay afloat.
There are three types of liquidation:
Creditors’ voluntary liquidation - your company cannot pay its debts and you involve your creditors when you liquidate it
Compulsory liquidation - your company cannot pay its debts and you apply to the courts to liquidate it
Members’ voluntary liquidation - your company can pay its debts but you want to close it.