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Supermarket downturn blamed for Longcross failure

18 Jun 15 Surrey-based Longcross Construction has gone into administration.

Lee Manning and Matt Smith of Deloitte LLP were appointed joint administrators of Longcross Construction Limited on 16th June 2015. At the same time, the directors of Longcross Group Limited also filed a notice of intention to appoint administrators to the parent company.

Longcross Construction is a project management firm for the construction industry, typically overseeing building projects for retail outlets and some residential properties. It is based in Ashtead, Surrey and has around 140 employees and annual revenues of £190m. The joint administrators have confirmed they are reviewing options for the business.

Parent company Longcross Group turned over £231m in the year to March 2014 and made a pre-tax loss of £1.25m. It has offices in Surrey, London, Birmingham, Derbyshire, Exeter, Oxford, Sheffield and Sidcup.

The decline in capital spending by struggling supermarkets was blamed for the collapse.

Joint administrator Lee Manning said: "The company had been quite focused on the grocery business where cutbacks have been made on store expansions and refits. The directors concluded that the company was unable to continue to trade on this basis and resolved to place the company into administration. Work on site has been suspended while the joint administrators are considering the position."

Other companies within the Longcross, namely LXE South Ltd, LXE North Ltd and Longcross Fire & Security, continue to trade normally and are unaffected.

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