A case brought by employment law specialist Nualaw on behalf of 221 ex-employees of the business was heard at an employment tribunal in Birmingham last week.

Redditch-based SP Group went into administration in July 2018, just four months after the £45m turnover company was acquired by French investor Landry Kouakou’s SelmerBridge acquisition vehicle. He bought the firm as part of a £6m deal with St Ives for its wide-format businesses.

“We claimed that SP Group had breached employment law in not giving employees sufficient warning of the closures or consultation in July 2018,” said Nualaw managing director Nuala Toner.

“The judge agreed with us and awarded the employees the maximum compensation of 90 days’ pay.”

Toner explained that as the company is in administration only a percentage of this – eight weeks at a maximum of £525 per week – is recoverable and will be paid by the National Insurance Fund via the Redundancy Payments Office. 

“We need to wait for the written judgement, which may take a few weeks, which we will send to the Redundancy Payments Office (on behalf of the Secretary of State). The Redundancy Payments Office generally make payment within three-to-four months of receiving the judgement,” she added.

SP Group owed unsecured creditors more than £4.9m when it went into administration. However, according to the latest administrators' progress report published last month, that figure has increased by £1m – to £5.93m – although the claims are yet to be adjudicated upon. The administration has been extended until July 2020.