Construction group enters administration with loss of 150 jobs
A CONSTRUCTION firm that has worked on some of Birmingham’s most high profile regeneration projects has collapsed into administration with the loss of 150 jobs.
The Parkstone Group, based in Coleshill, is understood to have been struggling financially, partly because of late payment from some of its clients.
The group comprises Parkstone Group Holdings Ltd, Parkstone Group Ltd and Parkstone Construction Ltd. All have ceased trading.
Administrators Lloyd Biscoe and John Kelly, from the Birmingham office of Begbies Traynor, have been appointed following a court application by the Parkstone directors.
The appointment covers Parkstone Group Holdings Ltd, Parkstone Group Ltd and Parkstone Construction Ltd, and has resulted in 74 staff being made redundant at the group’s head office. The remaining redundancies are with contractors working for the business.
John Kelly, who is also regional managing partner at Begbies Traynor for the Midlands, said: “The companies had survived the worst recession in memory but latterly with increased challenges to be paid on contracts cash ran out and the directors were faced with no alternative but to seek the protection of an administration order.”
The group, which has worked on projects in the Bullring, Birmingham Children’s’ Hospital, the refurbishment of the NIA and was involved in work at the University of Birmingham at the time of its collapse, was the subject to a management buyout in 2007 just before the recession began to bite.
The joint administrators said they were looking for interested parties who may be able to take on some of the group’s existing contracts. Interested parties have been told to contact the administrators at their Birmingham office.
