Administrators have been formally appointed to GB Group Holdings Ltd and GB Building Solutions Ltd with 350 employees made redundant.
BDO LLP business restructuring partners Tony Nygate and Graham Newton were today appointed as joint administrators of the firms.
A statement from BDO read: “In recent months, the companies experienced trading and cash flow issues, including three substantial claims on contracts, which contributed to a deterioration in their working capital position.
“Efforts to raise funding to secure the future of the Companies were unsuccessful, leaving no option left but to place them into Administration. Regrettably, it has been necessary to make approximately 350 employees redundant.”
It said that other entities in the wider GB group were not in administration.
BDO business restructuring partner, Tony Nygate, said: “The companies experienced a serious deterioration in their working capital position and as a result were unable to continue to operate.
“Regrettably, it has been necessary to make all employees redundant, save for a small number to assist the administrators. The joint administrators are actively seeking purchasers for all or part of the business or assets, and going forward, our priority will be to maximise recoveries for the creditors.
GB Group chairman Martin Smout had said on Friday the firm would do “everything possible” to secure its future, after it filed a notice of intent to appoint administrators.
Construction News travelled to a GB Group site in West London on Friday and spoke to one supplier, who had been due to meet one of the GB Building Solutions team that day.
The supplier, who wanted to remain anonymous, was shocked at the news and told Construction News that he had not been informed of GB Group’s intention to appoint an administrator.
A Speedy Hire driver was also there, attempting to reclaim generators and fuel tanks from site but was denied entry by two security guards.
The driver said: “We [Speedy drivers] were told to come and collect the equipment… I’ve just been told they’re not letting it off site at all.”
A security guard on duty told Construction News: “All I know is that [GB Group] have gone into administration… we have to make sure that nothing leaves the site.”
- Prospective purchasers or creditors with enquiries can contact the administration team by email at email@example.com
Contact Tom Fitzpatrick at Construction News for more on this story on 020 3033 2748 or by email at firstname.lastname@example.org