Jobs lost as construction firm goes into administration

A well known construction firm has gone into administration with the loss of a number of jobs.

Warrington based Clovemead, which was launched in 1980, went into administration earlier this week.

The firm appointed Allan Cadman and Charles Brook, partners in Manchester-based advisory and business recovery practice Poppleton & Appleby, as joint administrators.

The independent contracting specialist company which worked in construction, minor works, fuel systems and signage was well known across the region.

Operating out of premises in Warrington and Widnes the company employed over 50 staff and worked with sub-contractors across the region, providing services to various blue-chip and high-expectancy clients as well as local authorities, universities, schools and colleges, automotive manufacturers, distributors, and retail services.

When the company’s traditional sources of business started to decline, the directors approached Poppleton & Appleby for support in achieving a managed work-out of existing projects whilst seeking potential acquirers of the material parts of the business.

This culminated in a satisfactory disposal of the company’s fuel systems operations, together with existing contracts and personnel, and the signage division – both of which operated from the Widnes premises.

In each case, the buyers are independent of the company and are successful companies in their own right.

As a result 25 staff have kept their jobs.

Although some residual staff are being made redundant, Poppleton and Appleby are continuing to work with the former management and directors in assisting existing customers of the construction division to fulfil on-going projects.

This is likely to lead to further realisations for the benefit of the company’s creditors, as well as providing potential employment for some staff.

Sub-contract creditors, suppliers, staff, and Poppleton & Appleby are working with customers and are continuing to liaise with them to achieve the best outcome, minimising the financial impact of the company’s collapse.

Their familiar branded red vans will continue to be seen around the UK, particularly in the North West.

Allan Cadman, who is based in Poppleton & Appleby’s Manchester office, said: “We are proud to have been selected to assist such a well-regarded company in achieving such a positive outcome.

“Although unable to preserve all jobs, we are confident that the outcome will assure many long-serving staff of future employment and retain critical skills within the region.

“Clovemead is a good example of the kind of results that can be achieved with early intervention and a willingness to explore commercial prospects in a bespoke manner.

“We are grateful for the trust, support and commitment of all at Clovemead and their clients that we have received.”