Tony Nygate and Graham Newton, business restructuring partners of BDO LLP, have been appointed joint administrators.
Approximately 350 employees have been made redundant.
GB Group Holdings and GB Building Solutions operate from headquarters in Sunbury, Surrey, with offices in Newcastle, Rugby, Wakefield and Stockport. GB Group was formed in 2005 from a management buyout of the building divisions of Gleeson, led by Martin Smout.
In recent months, GB has experienced trading and cash flow issues, including three substantial claims on contracts, which contributed to a deterioration in the working capital position.
As we reported last week, GB appointed BDO to conduct a review of the business and come up with options for saving the business. However, efforts to raise funding to secure the future of the business failed, leaving administration as the only option.
BDO business restructuring partner Tony Nygate said: “The companies experienced a serious deterioration in their working capital position and as a result were unable to continue to operate. Regrettably, it has been necessary to make all employees redundant, save for a small number to assist the administrators. The joint administrators are actively seeking purchasers for all or part of the business or assets, and going forward, our priority will be to maximise recoveries for the creditors. Prospective purchasers or creditors with enquiries can contact the administration team by email at gbgroup@bdo.co.uk.”
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