A DULVERTON business has closed suddenly – with the loss of 22 jobs in the town – after it was reportedly unable to meet new insurance costs.
Councillors and local people are rallying round to try and help those made redundant after administrators for The Dulverton Laundry Limited were called in.
A buyer for its customer base was found and its service to commercial and domestic customers throughout Somerset, Devon and Cornwall will be maintained – but this company will not operate from Dulverton.
Neither former owner and director Sue Pugsley, who ran the Chapel Street business since 2003, nor the new owner, who operates Exmouth Laundry Services, returned the Free Press’s calls.
However, Cllr Nick Thwaites, West Somerset councillor for Dulverton and District, and a former chairman of Dulverton Town Council, said he had spoken to both Ms Pugsley and the new owner.
He was told that costly new insurance and conditions that had to be met for the Dulverton Laundry’s Grade II listed building (which they did not own), led to the laundry going into administration.
The previous insurer decided not to continue and a new supplier agreed to insure the company at a cost of around £1,600 a month, plus a £100,000 excess charge per claim, with a number of other conditions imposed – including a new state of the art fire alarm system and removing ivy growing on the building.
Dulverton Laundry could not meet the conditions and was given 14 days from May 4 to sort it out. Administrators were called in, a buyer for the customer base was found on May 15, and on May 17 the 22 employees, including the owner, were given notice, Cllr Thwaites said.
He was also told by the new owner that he believed he would be able to take on some staff, but would wait a week or so first. The new owner had also written to existing customers and would maintain Dulverton Laundry’s service.
Full report in the Free Press