It is proposed that the £20,000 currently held in the trust fund is donated to a children’s charity. Attempts to claim around £30 million which was pledged to redundant workers by the Phoenix Four, have been taken as far as the High Court and have failed.
The Phoenix Four are estimated to have walked away from the closure with £42 million, after buying the company for just £10 but have resisted pleas from ex-workers, activists, unions and the Trustees for a contribution to the Trust Fund.
Northfield MP Richard Burden reacted to the news, saying: “Trustees seem to have given up hope of ever putting the funds in to the Trust which the Phoenix Four led employees to believe they would. If [reports are] true, trustees decision may be realistic but it’s a sad end to the saga of the Trust Fund.”
Mr Burden added: “The Phoenix Four were the ones who made a commitment. They should have stuck to it. They seem to have committed company assets elsewhere that they promised to employees, so should have put some money in themselves. They walked away with millions as their workers lost their jobs and more. The Phoenix Four could have afforded to put £1m each to Trust.”
On donating the Trust Fund to a children’s charity, Mr Burden said: “I hope Trustees officially write to employees as soon as possible to let them know their position and reasons – directly and quickly, not only through the media.
“I hope the Trustees’ decision draws a line – even a bitter one – to allow employees to move on. But the Phoenix Four have to live with what they promised to do but refused to do when it came to it.”