Manchester contractor Multibuild has proposed a Company Voluntary Arrangement to its creditors and said it will be forced to make redundancies.
In a statement, the company’s parent, Multibuild Group said a CVA would achieve the best return for the companies and individuals owed money.
The statement said: “The operating company has been experiencing problems due to a combination of the recent economic conditions and a number of bad debts.
“The directors of the business have chosen the CVA process as their preferred way forward, as it is expected that the longer-term cash flow of the business will allow it to provide the best financial returns for affected creditors.
“A small number of unavoidable redundancies will be necessary as a result of this arrangement. However, the vast majority of employees will continue to work within the Multibuild group of companies, which will remain unaffected by this move and will continue to trade as normal.”
One disgruntled sub-contracter told cnplus.co.uk that the company would find most subbies in the North West unwilling to continue working for the company on jobs already on-site.
He said: “It won’t be able to finish those jobs.”
Packs proposing a per centage of monies owed to creditors was sent out by post on Thursday.