THE future of one of the town’s biggest companies is in doubt as it struggles with debts that could see it shut down.

Daniel Contractors Limited, based on Lyncastle Way, Appleton Thorn, has gone into administration it was announced today, Wednesday.

Deloitte has taken control of the company, which has 1,300 employees, with the majority of jobs believed to be safe.

Administrators said a deal was in the pipeline to transfer two main contracts of the business, and many staff.

A spokesman for Deloitte said: “A transfer of these contracts would safeguard 990 jobs and also ensures these contracts are able to continue to operate with minimal interruption."

Daniel, founded by brothers George and Conal Daniel in 1994, has struggled to pay bills for months.

Its most recent accounts in October 2011 show a turnover of £117m, down from £136m, while operating profit returned to the black following a loss of £26,000 in 2010.

There are currently seven County Court Judgments registered against the company, totalling more than £111,000, according to Top Service credit agency.

More than 30 customers have also made 76 complaints over late payments, while Daniel had its credit limit withdrawn in November last year.

Sources at the company told the Warrington Guardian that some staff have signed agreements to be paid on a weekly basis in return for a cash payment of around £250, while a consultation is under way to stop over time.

Clr Terry O’Neil, leader of Warrington Borough Council, said it would work to keep jobs in the town.

He said: “It would be very sad to see this company go under.

“We will do everything we can to help this company, or whoever might take over, to save the jobs and to keep them in Warrington.

“Warrington can make a very strong case for this company to stay in Warrington.”

Daniel is contracted by United Utilities to install, repair and maintain water meters to homes and businesses in the town.

A spokesman for United Utilities said: “We are aware of the situation with Daniel.

“We don’t expect it to impact on our customers.”

The spokesman added water mains work in the town will not be affected.