3 Jun 2011
0 comments

Contractors in Sheffield and Essex go under while private equity saves third

Two contractors have been placed in administration while a third has been saved by private equity.

Sheffield contractor C R Gibbs has gone into administration with the loss of 49 jobs, Construction Enquirer reported.

Construction News reported that Essex building firm FJ French has also been placed in administration, making 27 staff redundant.

And specialist contractor Holloway White Allom has been saved by private equity firm Privet Capital after a winding-up petition was filed on the company.

Privet Capital has now taken a majority stake in Holloway. The firm, which was turning over £60m a year before the recession, has a 130-year history, including building Bank of England, the Old Bailey and the fountains at Piccadilly Circus.

It encountered financial difficulties last year following a sharp downturn in business. In December about 60 of its 197-strong workforce were made redundant and a winding up petition against the firm was lodged. The winding up application was withdrawn following Privet Capital’s cash injection into the company.

In Sheffield, administrators John Russell and Chris White at The P&A Partnership confirmed that the C R Gibbs had ceased trading and that all employees have been made redundant.

“C R Gibbs & Sons is a well respected Sheffield business that has unfortunately been a casualty of both the downturn in the construction sector and cuts in the public sector. The majority of its contracts were within the public sector, including schools, universities and NHS Trusts,” White said.

Gibbs restructured the business last year in a bid to stay afloat by cutting costs but had refused to get drawn into suicide bids.

The firm said: “We do not promote negative bidding strategies in order to secure work as this creates unachievable tender levels and a negative cycle for clients and contractors alike.”

FJ French, which was established in 1895, said it had been placed into administration due to “ongoing financial difficulties”.

A statement from administrators FRP Advisory LLP said: “The building contractor’s financial difficulties arose following a significant reduction in work from its primary client, a local authority, brought about as a result of the recession.”