Building firm forced into administration
ASKELMERSDALE contractor that had been working on high-profile developments around the North West has fallen into administration.
Efforts are now under way to find a buyer for Construction Partnership UK.
The firm’s projects included schemes in Salford, Chester and Liverpool city centre, but it ran into financial difficulties.
The privately-owned contractor has more than 20 years’ experience on schemes in both the private and public sector, but Steven Muncaster and Sarah Bell of Duff & Phelps were appointed joint administrators on April 24.
Mr Muncaster said: “CPUK has come under increasing pressure over the past 12 months due to a combination of factors including an increasingly competitive market and raw material price increases.
“The company exhausted all options in terms of finding a solution to the current financial issues, caused by a combination of problem contracts and bad debts.
“The combined effect of these, coupled with the uncertain outlook for the construction industry in the wake of the coronavirus pandemic has caused a drain on the company’s cash reserves and it had no other option but to appoint administrators.”
The company mainly operates in the North and the Midlands, undertaking new build and refurbishment contracts carried out under traditional and design and build arrangements in most building sectors in the value range £1m to £25m.
Projects included The Waterhouse in Salford – a Forshaw Group scheme delivering 86 apartments in Salford, a Whitecroft Group 72-apartment scheme in Chester, and as leading contractor on Primesite’s £23m The Rise – a 400unit development of apartments in Liverpool city centre.
The latter troubled project went into administration itself in February.
According to Duff & Phelps, the business temporarily ceased trading because of the coranavirus crisis and all staff were placed on furlough leave by the company prior to the administration.
The employees will remain on furlough and the joint administrators are now looking at a sale of the business and assets of the company “as a going concern in the first instance”.