Bolton construction company slides into administration

Anthony Collier and Ben Woolrych of FRP Advisory LLP were appointed joint administrators of Herbert T Forrest Limited, today, December 7.

The Bolton construction company employs around 230 people and provides construction, refurbishment and energy services across the North of England.

In March 2017 the company was refinanced, including additional shareholder support, in order to address cash pressures caused by a series of losses on refurbishment contracts.

Since then, the business has continued under new management, with a strategy focused on growth in the refurbishment and energy divisions.

However, delays and operational issues on three construction sites which were started before the refinance, combined with incorrect pre-construction estimates across new construction projects, resulted in unsustainable cash-flows and the need to appoint administrators.

Joint administrator Anthony Collier said: “Despite the best efforts of the directors, the legacy issues facing the company have been unable to be resolved, resulting in an unsustainable financial situation.

“We have successfully agreed a sale of certain contracts to Engie Regeneration Limited, which will preserve 64 jobs and provide continuity for customers in the refurbishment and energy divisions

“Unfortunately, it has not been possible to secure a sale for the construction and housing elements of the company, and we are working with all stakeholders to deal with the orderly wind-down of these divisions.

“We are pleased that during this process, working alongside management, we have assisted a large number of employees find alternative employment within the industry and will continue to work closely with agencies, including the Redundancy Payments Service, to ensure that employees receive every support at this difficult time.”

On November 22, TheBusinessDesk.com reported that Forrest was bidding to secure its future after it stopped work on several developments in Merseyside and Greater Manchester.

Forrest said it was undertaking a financial restructuring, blaming “a series of incorrect pre-construction estimates” on some of its projects.

It denied claims that it was about to enter administration.

Among the high-profile projects it was working on were three schemes in Liverpool, a care home in Knowsley, and a residential development in Salford.

Developers at all the projects said they were confident they could complete the work if Forrest was unable to do so.

Interested parties or suppliers seeking further information about the administration should contact the FRP Advisory LLP Manchester office on 0161-833 3344.

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