Pettifer Group’s contracting arm plunged into administration yesterday after the £50 million turnover firm in Shipston-on-Stour, Warwickshire ran into short term cash flow problems.
KPMG Restructuring administrator Mark Orton said: “Pettifer Construction has been suffering from cashflow difficulties, mainly due to the current financial and economic climate.
“These difficulties reached a point this week where the directors had no option but to place the company into administration.
“While Pettifer Construction is a recognised brand within the industry, the nature of this business means that we will be seeking to wind it down over the course of the next few weeks.
“Regrettably, this has meant that significant redundancies have been made."
With the company due to start a number of new contracts in the New Year Pettifer chiefs have been locked in talks with its sole bank RBS over the past few weeks to find a short term cash flow solution.
But the talks were unsuccessful. An RBS spokesman said: “We have worked hard over the last few weeks with the directors of Pettifers and their advisors and continue to work with the directors and now KPMG to help manage the situation the company finds itself in due to the present difficult trading conditions."
Pettifer Group chairman Brian Pettifer has warned the rest of the business is in danger of slipping into administration, except for the firm's investment arm.