Thorts, formerly Shaylor Construction, has filed for administration, as former parent organisation Shaylor Group shifts its operational focus.
Thorts Ltd has filed for administration, with ReSolve appointed to handle the process, Construction News has learned.
The company, then called Shaylor Construction Ltd, was sold by the Shaylor Group on 25 June this year to RCapital, a specialist restructuring business. It was then renamed Thorts.
Thorts does not employ any construction staff and it is understood its administration would not lead to any redundancies.
Shaylor Group director Gary Turley told CN the group had been in the process of winding up the company’s operations before selling it.
He said it was “business as usual” for the Shaylor Group, adding that the sale of the Shaylor Construction arm was not expected to affect the group’s turnover.
Shaylor Construction was one of three arms of the group, which also includes Shaylor Interiors and Shaylor Repair and Maintain.
Mr Turley said the group would continue construction work, but focusing on smaller projects “on a lower risk basis”.
The Shaylor Group is named as being on the £1bn Ministry of Justice strategic alliance agreement framework for construction.
A letter written on 29th June by Mike Peries, chief restructuring officer for and on behalf of Thorts, and seen by Construction News, said Thorts ceased construction operations earlier this year. He said in the letter that he had been appointed to “oversee an orderly winding down of the company’s business so as to optimise the position of its remaining creditors”.
It said he had engaged reporting accountants and an insolvency practitioner to assist him, and that, following their reports, he would propose a “way forward” by 20 July.
In its most recent filed accounts, Shaylor Construction reported turnover for the year to 31 March 2011 of £26.9m, down from £33.4m the year before. Profit was £3.8m, down from £4.7m; operating margin was 13 per cent, down from 21 per cent in 2010. It employed a total of 7 people, 5 of whom were in “managerial, administrative and support”, while two were “site-based”. Its staff are believed to now be working for Shaylor Group.
The letter goes on to say that the company is developing “a solution that will optimise the recovery of creditor monies”.
Emma Miller of credit reference and debt recovery agency Top Service, said the firm had received “continuing reports of slow payments and non-payment over the last few months”.
She added: “This information along with the recent activities within the company led us to remove the credit limit and be able to forewarn our customers of potential risk. This mornings news has come as no surprise.”