Employees at Derby-based SOS Wholesale are pursuing legal action to secure compensation after the discount delivered wholesaler entered administration earlier this month, resulting in most of its 100 staff being made redundant.
The wholesaler supplies consumer goods to independent, convenience, discount, major multiple and garden centre retailers in the UK and Ireland.
It is understood that the business was unable to meet its financial obligations and appointed advisory firm Interpath as its administrator.
The majority of the wholesaler’s 100 employees have been made redundant, with a small number retained to assist the administration process, according to Interpath.
Pearson Solicitors and Financial Advisers said it is working with “concerned employees” to review the redundancy process and assess whether the legal requirements for consultation were met.
The law firm said its employment team is assisting more than 30 staff with potential protective award claims.
If the correct redundancy procedures were not followed, staff may be able to claim the award, which is compensation of up to 90 days’ gross pay, said the firm.
“We are in the early stages of investigating these claims and advising the staff on their options,” said Alan Lewis, partner and employment solicitor at Pearson.
“It’s early days but if employers did not consult with the appropriate representatives, then any staff made redundant may potentially make a claim. If you lose your job through administration every penny counts.
“Redundancy is a difficult time, especially when processes are not followed properly. Where employers fail in their duty to consult appropriately, workers can potentially claim compensation, and this can be a lifeline in tough circumstances.”
Interpath have been approached for comment.
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