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Tue March 19 2024

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Parkstone Group collapses

28 Jan 15 Birmingham-based civil engineering contractor Parkstone Group has ceased trading after going into administration.

Parkstone Group Holdings, Parkstone Group and Parkstone Construction are all now in the hands of administrators who are looking for contractors to take over Parkstone’s current projects.

An estimated 74 staff at the firms’ Coleshill headquarters have been made redundant.

Lloyd Biscoe and John Kelly of Begbies Traynor were appointed joint administrators on Monday 26th January following a court application by the directors of the companies.

The £30m turnovercompany had been trading profitably in recent years but had fallen victim to cashflow.

Mr Kelly said: “The companies had survived the worst recession in memory but latterly with increased challenges to be paid on contracts cash ran out and the directors were faced with no alternative but to seek the protection of an administration order.”

The group was subject to a management buyout in 2007 just before the recession began to bite.

The joint administrators said that they are seeking interest from other contractors who may be able to take an assignment or novation of existing contracts.  Interested parties should contact John Kelly or Gareth Prince at Begbies Traynor’s Birmingham office.

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