43 jobs go as Askam Construction folds

LANCASTER builder Askam Construction has gone into administration with the loss of half its 90 staff.

Sam Woodward and Tom Jack of accountancy firm EY were appointed to the business on April 15 and closed the construction arm with the loss of 43 staff.

They said the business’s demise was down to a number of losses on contracts over the past two years

A further 45 staff were working on civil engineering contracts which have been sold on to a related company, Askam Civil Engineering. The shareholders of both companies are John and Joanne Lowery.

EY said the administrators are working on the sale of remaining assets, which include a residential property development near Lancaster, various construction and civil engineering contracts and work in progress.

Mr Woodward said: “Askam Construction suffered material losses on a number of contracts during the past 24 months, and these placed significant pressure on the business and its cash flow.

“This pressure ultimately became too great for the business to continue viably and the directors concluded that the company was insolvent. We are pleased to have completed a sale which has secured the ongoing employment of 45 people, and we will now focus on realising the company’s remaining assets to secure the best possible return for creditors.”