What next for Welshpool schools after Dawnus collapse?

Administrators from accountants Grant Thornton, who have taken over construction company Dawnus, have made contact with Powys County Council (PCC).

Swansea based firm Dawnus (Welsh for talented) went into receivership last week, leaving Welshpool’s two new primary schools in limbo.

Dawnus had contracts by Powys County Council to build the 360-pupil English-medium primary school and converting the Grade II listed Maesydre school building into a 150-pupil Welsh-medium primary school.

In an update to our Local Democracy Reporter, a spokesman for PCC said that the administrators had been in touch and that they are still working on contingency plans for the schools affected.

Lindsey Phillips, chair of Ysgol Gymraeg y Trallwng (Welsh Medium School in Welshpool), said that she had discussed the situation with the council and a letter had been sent out to parents updating them on the issues.

“Obviously we have not been able to give much detail as there is little information yet as to what will happen now,” said Mrs Phillips.

County Councillor for Welshpool Gungrog, Francesca Jump, is the chair of governors at Welshpool’s Church in Wales, school.

She said that all concerned at the school were “devastated” at the collapse of Dawnus.

Cllr Jump said: “The site is all locked up but it’s been very upsetting. 

“The children and staff are desperate to be able to start at the school in September, and we’re hoping that something will happen soon so that this can still happen.”

Education portfolio holder, Cllr Myfanwy Alexander, has told parents that “luckily” the authority is still going through the planning process on the Welsh medium school.

Cllr Alexander said: “It should be easy to find another contractor.”

Last Friday, March 15, it was announced Alistair Wardell, Matthew Richards and Philip Stephenson, of Grant Thornton, had been appointed joint administrators to the Dawnus Group.

Alistair Wardell, restructuring partner at Grant Thornton, said: “The Dawnus Group has struggled with a wide variety of challenges and despite significant efforts to turn the business around, unfortunately it has not been possible to rescue the group.

“As a consequence, the future cash flows have meant that the business was not in a position to continue to operate, including completing existing work in progress.

Mr Wardell added: “Our priority is to work with management to ensure that any impact on customers, employees and creditors, including subcontractors, is minimised.

“That process is at its early stages and key employees continue to be retained to support the required procedures.”