Cladding specialist Colourclad has gone into administration after the collapse of Barnhill Construction earlier this month, which owed the cladding firm £350,000.
Administrators Beever and Struthers blamed “fierce competition for contracts in the construction sector” after Colourclad, in Stockton Heath, Warrington, was placed into administration on 12 April.
All 20 staff were made redundant.
Administrator Charles MacMillan said the firm suffered from a downturn the general downturn in construction work and in particular, increasing pressure on profit margins.
He said Colourclad had to write off an estimated £350,000 when Wrexham-based civil engineering and maintenance contract firm Barnhill Construction entered administration itself.
“Over the past couple of years competition for work in construction has grown increasingly fierce and Colourclad had to adapt by quoting for larger contracts but at increasingly regressive margins,” he said.
“The business had previously concentrated on smaller refurbishment projects but the amount of this work was also badly affected by the onset of the economic downturn.
“I am proactively seeking a buyer for Colourclad but the overly competitive nature of this sector means that sadly, yet another business is likely to fail. All the employees were made redundant because there is no profitable work in progress to complete.”