Staff who worked at dissolved Lloyd Loom of Spalding are still waiting for back pay – said to average £2,000 – six months after their base closed.
The site in Wardentree Lane, Pinchbeck, shut down suddenly just before Christmas last year.
Director Anthony Draxler said he could no longer operate the business under a lease operated by landlord Michael Walker and was switching production to Romania.
When Lloyd Loom of Spalding was dissolved last month it had liabilities in excess of £400,000, including a £160,000 loan by director Yun Chen and £137,400 to HM Revenue and Customs. Staff were employed by Lloyd Loom Furniture Ltd – which became the subject of a Company Voluntary Agreement (CVA), a procedure designed to assist in the rescue of a business in financial difficulties, while working with creditors.
Mr Walker – a former owner of the business – says he has great sympathy with ex-staff who remain out of pocket through no fault of their own.
He said: “Some ex-employees have had a very difficult situation. They got some money from the government but can’t get their back pay.
“The average is about £2,000, which is a large amount when most are struggling to find new jobs.”
Mr Draxler told The Voice that that he was not in agreement with some of the figures put forward, but he was hopeful that payments would soon be made.
He added: “We are doing everything we can to ensure that ex-employees are being looked after.”
An investigation by Lincolnshire Police was launched after it was alleged that Mr Draxler was committing fraud by taking orders which he could not fulfil, but he has been cleared of any criminal offence.
Lincolnshire Police chief constable Neil Rhodes said in a letter to South Holland and The Deepings MP John Hayes: “During our enquiries we have found that Mr Draxler, while perhaps acting in an unprofessional manner, was not committing a criminal offence.
“When the business ceased in December 2015, Mr Draxler was permitted (through what is known as a Company Voluntary Agreement) to try and rectify its trading position. During this time he could continue to take customers’ orders, even though they were not being fulfilled.”
Meanwhile, the former furniture manufacturing base in Pinchbeck is set to be occupied again shortly.
Mr Walker said there had been a lot of interest as it was “in a fantastic location” and expected to seal a deal soon.
