A BARNSLEY digger firm has gone into administration leaving around 80 staff redundant just weeks before Christmas.

Warwick Ward, based in Blacker Hill, collapsed into administration after 55 years of trading.

The firm was founded in 1970 and has gone on to become one of the UK’s largest suppliers of new and used earth-moving and recycling equipment.

It has additional depots in Bromsgrove and Harlow.

The firm employs 89 people and it has been confirmed that the majority have already been let go.

In June 2023 owner-directors Ashley and Matt Ward sold the company to an employee ownership trust.

In their last year of ownership the firm made a pre-tax profit of £679,000 on sales of £51.2m.

However, in its first year under employee ownership it sank to a pre-tax loss of £1.3m with sales revenue falling 11 per cent to £45.3m.

James Lumb and James Clark from Interpath have been appointed joint administrators and they say the company had faced significant financial difficulties in recent times, exacerbated by the general drift in capital spending witnessed across the sector.

In response, the company explored options for re-financing, sale and investment but, when a solvent solution could not be found, the directors took steps to file for the appointment of administrators.

Mr Lumb said the change in ownership was a factor for the firm going into administration.

He added: “Employee ownership trusts (EOTs) can often be highly successful, creating an exit route for shareholders and bringing long-term operational and cultural advantages across the business.

“However, the additional debt that many such companies take on as part of the sale to an EOT can prove to be a burden further down the line, particularly if trading conditions become difficult.

“In Warwick Ward’s case, the debt accrued as part of its transition to employee ownership was certainly a contributory factor in its difficulties.

“Ultimately, however, it was the wider economic headwinds buffeting the construction and waste recycling sectors that served to place unsustainable pressure on the company’s cashflow, which in turn led to our appointment as administrators.

“Our immediate priority will be to support all those workers impacted by redundancy, while we also explore options for the company’s assets.”

Coun Robin Franklin, who represents the Hoyland Milton ward, told the Chronicle that his ward councillors, as well as the council as a whole, will do its utmost to support those staff who have been made redundant just weeks before Christmas.

His colleague, Coun Mick Stowe, added: “It’s devastating news that a well-respected businesses, Warwick Ward, has gone into administration.

“Visiting the site we learned that security could not allow access and our thoughts need to focus on the workforce and their families.

“The administrators should ensure they receive all their entitlements - especially at this time of year.”