BOSSES of companies in Gwent claim a building contractor which went into insolvency owes them thousands of pounds.

Noel T James, of Kelvedon Street, Newport, went into insolvency on Tuesday and all its 75 workers have been made redundant.

General manager Nigel Gregory yesterday admitted they owed money to suppliers, as well as Customs and Excise and Inland Revenue.

He said problems arose after taking on new contracts in the area. Mr Gregory said the company itself was also owed hundreds of thousands of pounds.

"The contracts did not realise the profits that were anticipated," he said. "Whatever form insolvency takes there are always going to be injured parties."

Mr Gregory remains confident that they can salvage something out of the crisis.

"I'm sure efforts will be made for a phoenix company to come out of the ashes," he said.

"It's a difficult time but we have very supportive clients. We need to dust ourselves off and see what we can make out of the difficult situation."

Peter Thomas, sales manager for Francis Catering Solutions, in Magor, claims his firm is owed around £2,000 for supplying stainless steel. He said: "Our business will be able to cope without the money but it will be a painful absorption."

Clive Chainey, manager of Caldicot Building Supplies, which has an office just down the road from Noel T James, said they were also owed money but would not confirm how much.

Workers who were locked out on Tuesday have been told they will receive letters explaining the situation, but they are disgusted with managers for not telling them about their futures sooner.

Allan Hathway, of Medway Road, Bettws, Newport,a painter and decorator who has worked for the firm for ten years and is owed £300 for a week's work, said: "I'm angry with the way this whole thing has been handled." Patrick Long, head of Newport and Gwent Chamber of Commerce and Industry, said the company's plight was sad news.

"People being made redundant is not good, especially when it involves a company with such a good reputation and history," he said.

The company act as contractors for building, joinery, civil engineering, maintenance, painting and plumbing projects.