Firm axes 200 jobs

A compensation claims firm in Lancashire is axing 200 jobs after it was put in to administration.

The Life Repair Group (LRG) - shirt sponsors of Blackpool Football Club - made the announcement on Friday despite making £800,000 profit in 2002.

Following the collapse of similar firms like Manchester-based The Accident Group, attitudes changed to funding within the compensation claims sector leaving LRG with no cash support, bosses said.

Administrators Begbies Traynor (BT) will now hold talks with other potential funders to try and rescue the firm, which is based in Lancaster.

'Dreadful shock'

They were also due to hold face-to-face meetings with employees to explain why they are being made redundant.

Andrew Dick, a partner with BT, said: "It is a terrible task to make 200 people redundant and will probably be a dreadful shock to them.

"This has been a very successful, fast-growing, business, which last year showed profits of £800,000.

"However, this sector has recently experienced the collapse of two major players - Claims Direct and The Accident Group - and there appears to be a change in attitude from funders."

He said funding for the group stopped last month and talks to try and secure the "on-going viability" of the business had failed to secure enough cash to even meet this month's wages bill.

Life Repair Group director, Tim Schools, said: "All the directors are very saddened about the turn of events and would like to thank the staff for their commitment and support."