The administrator said that Shaylor Group had experienced severe cashflow pressures in recent weeks following several project delays.
After unsuccessful attempts to raise additional funding, the directors opted to place the company into administration. The business ceased to trade on Friday 14th June 2019 and approximately 200 employees were subsequently made redundant.
Following their appointment, the joint administrators are now in discussions with the company’s clients regarding the transfer of sites and say that they are supporting those affected by the closure of the business. A small number of employees at the head office in Walsall have been retained to support the administration process.
Live projects include the £38m Wolverhampton Civic Hall redevelopment project.
Raj Mittal, partner at FRP Advisory in Birmingham, said: “Despite the efforts of the directors, the financial issues facing the company were not able to be resolved and resulted in the decision to place the business into administration.
“Our immediate priority is now to support those affected and work closely with the Redundancy Payments Service to ensure that employees receive every support at this difficult time. We will also be working closely with clients to ensure the smooth transfer of sites.”
Shaylor made a pre-tax profit of £7.6m in the year to 30th September 2018 on £142m revenue. The family-run company, based in Walsall, had grown quickly in recent years; in the year to September 2015 its turnover was just £81m, meaning 75% growth in just three years.
Fred Shaylor, who set the company up in 1970, died in 2013. His children Stephen Shaylor (aged 50), Richie Shaylor (46) and Lana Shaylor (31) are now the key shareholders/directors at time of collapse.