Debts drive jobs scheme insolvency

ONE of Oldham’s flagship job creation schemes is in voluntary receivership.

One part-time and three full-time jobs have gone at The Enterprise Factory, Borough Mill, Hathershaw.

A combination of events, including debts by previous tenants amounting to tens of thousands of pounds, have driven the organisation into insolvency.

The business is now in the hands of insolvency practitioners Bridgestones, of Union Street.

Bob Bell, who was manager of the scheme, part-funded by New Deal for Communities and the European Regional Development Fund, said: “A combination of events have led to this happening.

“We had some bad debts, two companies didn’t pay their rent and we couldn’t pay our landlords.

“Unity Partnership have taken on some of the roles we had and when the North-West Development Agency gave a contract in Oldham to another agency and not ourselves life became very difficult.”

New Deal for Communities has now undertaken to “look after” eight remaining tenants at the Nield Street premises until Earl Mill is ready for occupation next month.

Gordon Roscoe, chief executive of New Deal, said: “It is true that the Enterprise Factory has been pushed over the edge by series of events, but I think we must look at the positive side.

“New Deal certainly had value for money from this initiative, helping creating a number of viable businesses. We shall continue to give the existing businesses still in Borough Mill all the support we can until they can move into their new accommodation at Earl Mill on Dowry Street.

Cash-flow

“We understand from the landlords this will be sometime in September.”

Jonathon Lord, of Bridgestones, said: “This business is in this situation because of a number of factors, but certainly the fact that two major tenants did not pay their rent is a major cash-flow factor.

“Until I speak to the landlords, who were acting on behalf of Oldham Council, I am unable to comment further.”