Probe over Graphex Limited debts

Mar 14 2010 by Rob Pattinson, Sunday Sun

THE North firm behind some of the country’s most famous signs is being probed over claims it dumped a £1.4m pension debt on the taxpayer.

It is understood Gateshead-based Graphex Limited is being investigated by the pensions watchdog after it was closed down – then its assets were bought by its parent company without pension liability.

Graphex Limited was responsible for making up the shortfall in its pension scheme because it was the sponsoring employer for the scheme.

When it was unable to meet the £1.4m pension scheme deficit liability the company was put into administration last year, leaving tens of workers and past employees to turn to the Government for help.

Just two weeks later the company’s machinery and materials were bought by parent company Rivermeade Signs, allowing it to carry on the business debt free, in all but name.

The Sunday Sun has now learned the Pensions Regulator is investigating claims bosses at Graphex Limited put the business into administration to avoid the pension fund liability, when other options might have been open to them.

The watchdog is also probing claims Graphex Limited was happy to let responsibility for the pension scheme fall to the public purse.

Concerned staff have now turned to the Pension Protection Fund (PPF).

If they are successful the pension shortfall Graphex Limited would have been responsible for making up will come out of public money.

Many affected have served Graphex Limited, on Dunston Industrial Estate, for more than two decades.

The signs they helped make sit proudly on Newcastle’s Centre for Life, Arsenal’s striking Emirates Stadium, and even the Royal Opera House, in London.

Now they say they’ve been “left out in the cold”.

Stephen Carter, of Gateshead, had been the firm’s commercial director for 10 years before he blew the whistle on the alleged plan to ditch pension debt.

The 51-year-old said: “I was stunned when I found out what they were planning. There are bigger firms with bigger pension deficits and they have found a way out.

“Some people took their money out to try and help, and they’ve lost their jobs.”