Former Van Elle chairman Michael Ellis has claimed that the firm’s management is ‘shifting the blame’ to Carillion following yesterday’s announcement of a £1.6M exposure from the firm’s collapse.
Speaking to GE’s sister title Construction News, Michael Ellis, who is Van Elle’s founder, said he believed the current management had neglected to follow procedure.
“I’m disappointed that Van Elle are exposed,” he said.
“The business had procedures in place to prevent this happening which look like they’ve been ignored; it’s bad management on behalf of Van Elle, which is nothing new.
“I’ve been concerned about the management over a lot of things and this just proves the point.”
Van Elle released a statement yesterday saying it had £1.6M in outstanding debt and work-in-progress with Carillion, and warned shareholders that in the event it is unable to recover the money owed, there would be an adverse financial impact.
The firm’s order book includes further expected work with Carillion for the remainder of the current financial year and beyond. In total, this represents approximately £2.5M of anticipated revenue for the second half of the current year.
In November last year, Ellis launched a failed bid to regain control of Van Elle.