50 jobs saved after construction group collapses
BIRMINGHAM-based Lyndon Scaffolding has helped to salvage almost 50 jobs from the wreckage of collapsed constructor, the Elliott Thomas Group.
Lyndon, the largest independent UK scaffolding contractor with sales of £38m and 600+ employees, has invested in Elliott Thomas Group (ETG) subsidiaries Rainsford Contracts and Taylor’s Hoists in a deal struck with administrators Carter Backer Winter (CBW).
Former ETG director John Self is understood to be a co-investor in the new venture.
Lyndon managing director, Rob Lynch said: “Both businesses have excellent trading records, a strong customer base and will benefit from the investment and financial support that Lyndon can offer.
“We have worked with Taylor’s Hoists and the senior management team for many years and we are looking forward to working ever more closely together to provide a better service to all customers.”
The deal for the hoists business should preserve around 25 jobs and enable a return to be made to the creditors of the wider ETG.
In addition, joinery business Rainsford Contracts has been sold on a solvent basis as a share sale by ETG in administration. This should secure a further 22 jobs and keep its creditor base intact.
CBW was appointed the administrator of Elliott Thomas Group Ltd, Elliott Thomas Ltd and Prime Property & Construction Ltd on October 27.
A CBW spokesman said: “The Elliott Thomas Group had been suffering cash flow issues due to difficulties in collecting payments on certain large contracts.
“We understand this issue crystallised on October 14, 2016 upon the withdrawal of a settlement offer regarding sums due on a site which had been subject to approximately six months’ worth of negotiations and enforcement action including the appointment of solicitors and an adjudication application.”
It is understood around 75 staff have been made redundant from ETG’s construction and logistics divisions, although sub-contractors and self-employed workers elevate this to around 300.
CBW said it would be sending out a proposal to creditors and a meeting with them would be arranged in due course.
“We believe that the restructured part of the group has good prospects going forward with the support of Lyndon Scaffolding,” added the firm.
Garretts Green-based Lyndon has worked on some of the UK’s most high profile construction projects, including the redevelopment of New Street Station.
