Exclusive: Failed loss adjuster RIIG did not pay staff their full salaries for the 10 months prior to the company’s collapse.
The company, also known as ‘Resources in Insurance Group’, was placed in liquidation last week with 20 staff laid off.
The company’s CEO, Gordon Vater, pictured, moved to Gallagher Bassett as business development director on October 15, taking 10 RIIG staff with him.
However, the majority of former RIIG employees are still owed thousands of pounds, and have joined a list of creditors on the company’s estate.
“January was the last time we received pay on the correct date,” said one former employee. “The rest of the time it’s been drip fed – 20% and 30% - on the basis of cash flow.
“We received 70% pay for August but we haven’t received pay for September and October. You never knew when a payment was coming. People suffered genuine financial hardship.
“We were continually told to stay loyal. If we downed tools, the company’s revenue would drop. We were over a barrel.”
The company entered administration and was placed in a company voluntary arrangement, managed by KRE Corporate Recovery.
However, the CVA was terminated early when it emerged the company could not keep up with debt payments.
The company has been referred to a liquidator, Harrisons, which will sell off remaining assets to meet its liabilities. Staff were laid off on 1 November.
According to the final accounts of the company, made until March 2017, the company had net liabilities of £889,864.
The former employee said there was bewilderment among staff when the CVA ended. “We were working projects and bringing in revenue,” he said. “I don’t understand where it all went wrong.”
Staff with unpaid salaries are among the creditors involved in the liquidation, but staff are not hopeful they will get the money back.
“We’ve been invited to claim by the government for our redundancy, but our lost wages are probably just that,” the former employee said. “We just join the creditors in the pot. It’s extremely doubtful we will see those wages. I don’t think the revenue is there for us.”
When contacted by Post, Vater did not immediately respond to a request for comment.
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