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Harry Neal in liquidation with debts of £12m

Harry Neal has gone into liquidation causing the loss of 130 jobs after four firms looking to buy the London-based construction firm failed to make an offer.

Accountants UHY Hacker Young were appointed by the directors of £40 million-turnover Harry Neal with the aim of finding a buyer or placing the firm into liquidation.

Four firms were understood to be circling the contractor which had debts of £12 million and a deadline was set for 18 February, but as the deadline passed no suitable offer was forthcoming.

Liquidator Peter Kubik said: “No one came forward with an offer and so it went into liquidation.

“We are trying salvage what assets we can and are seeing if we can sell on any of the existing contracts.”

Harry Neal had 10 contracts on the go each worth up to £5 million.

It carried out the majority of its work for wealthy individuals within the M25, but is understood to have become a victim of the recession with one of its overseas customers going bust.

Harry Neal’s most recent accounts for the year to 31 December 2008 show turnover of £40 million, up from £38.8 million the previous year.

Pre-tax profit of £31,500 was reported compared with £320,000 the prior year.

Construction credit reference agency Top Service said it had been monitoring Harry Neal’s situation closely for up to six months.