DCT Civil Engineering and its sister companies have gone into administration with the loss of nearly 100 jobs.
The firm, based in Oldham and with a turnover of around £37m, became insolvent after a protracted legal dispute with Liverpool City Council over a contract.
DCT won the case but had to pay a portion of Liverpool’s costs because it had rejected a settlement offer for a higher amount than was eventually awarded by the court.
The firm had to pay the council’s costs and its own from the time of the offer to the end of the case but could not afford them.
The three DCT companies – DCT Holdings, DCT Civil Engineering and DCT Plant – have all gone into administration.
Administrators EY (formerly Ernst & Young) have kept 13 staff on to assist during the administration process. The administrators will try to transfer existing contracts to other companies and sell the group’s plant and property.
Joint administrator Tom Jack said: “DCT Group was a long-established engineering business that has been impacted by the outcome of a legal dispute.
“Despite this being settled in the group’s favour, the group is now required to pay substantial legal costs that have been incurred by the other party over a number of years.
“As a result, the group has insufficient cashflow to fund continued trading and the directors of the group have concluded that the group is insolvent.
“We are therefore working with the directors and retained employees to try to preserve and sell contracts and maximise asset values for the group’s creditors.”
Chelmsford-based Euromix Concrete has also entered administration following a significant funding shortfall.
The ready-mix concrete specialist, which has worked with firms including VolkerFitzpatrick and I.D Corcoran, supplies domestic, commercial and industrial projects and employs nearly 100 people.
PwC administrators took control of the company last month. It is hoped a buyer will be found for the firm.