William Dawson and Daniel Smith of Deloitte were appointed joint administrators of Red Architectural on on Monday 11 November. They are also managing the affairs of sister company Red Aluminium.
Red Architectural specialised in the design and construction of the whole building envelope, including cladding and glazing. It was led by chairman Sean Keenan.
Red projects include the Westfield retail mall in Stratford, east London, where it dod £9.5m-worth of cladding and curtain walling. Red also installed the envelope for the Galliford Try’s Riverside Quarter scheme in Wandsworth and for 3 Piccadilly Place, Manchester.
Its website lists a portfolio of projects for big names including Mace Plus, Balfour Beatty, Carillion, Wates and Bowmer & Kirkland.
An official statement from Deloitte said: “Deloitte has been appointed as administrator to Red Architectural Ltd and Red Aluminium Ltd. We are currently advising staff and customers, and will provide further information in due course. However, at this stage we do anticipate that trading out existing contracts will be short term only prior to an orderly wind down of the business.”
Over the past three years Red has seen its annual turnover swell from £24m to £30m. It made a pre-tax profit of £47,000 in the year to 31 March 2012, its last filed accounts show, but lost £137,000 in the previous year. Its 2012 accounts show total assets of nearly £9.5m but liabilities of £9m.
Between 2010 and 2012 its tangible net worth shrank from £1.1m to just over £500,000.
The company's annual return was due to be filed on 20 October but it was not submitted.
Business intelligence company Top Service, which specialises in credit reference and debt recovery for the construction industry, said that it had 14 reports from customers advising that they were experiencing difficulties with Red Architectural.