Bow Scaffolding boss pleads innocence over company receivership

Michael Bowkett has hit back at suggestions that he set up Scaffserve eight weeks before Bow Scaffolding went into receivership as a result of advance warnings that Bow was going under.

Right up until the banks pulled the plug on the morning of Wednesday 30 June, Bowkett said survival plans were still under discussion.

"On that Monday and Tuesday we were talking with the bank about the Scottish operation getting away as a management buyout led by Robert Aitkin," Bowkett told CJ.

"It was just about ready to sign. We were also looking at the funding needed to restructure the balance of the business and the bank was talking of writing off some of our debts.

"But the plans for Scotland faltered. The bank was not sure if the delay would be two weeks or two months, and it lost confidence.

"On the morning of 30 June our bank, HBOS, demanded that we repay our £16m debt in full. I was unable to do that and so I had no choice but to call a board meeting where I said that we needed to appoint receivers."

Upset at the suggestion that he could have been trading for over four weeks in the knowledge that receivership was being planned, Bowkett said: "I’d put every penny of my own wealth into it. I’ve even lost my house. I have not profited by it [the collapse of Bow and the switch of workload to Scaffserve].

"We had a limited choice, it was either full administration for Bow, or set up Scaffserve in the hope that some business could be novated across. We did the latter and as a result I’ve protected some jobs.

"I’m looking to provide jobs for 50% of the former Bow staff and redundancies will be tens rather than hundreds."