Construction firm collapses with all jobs lost

A Lincolnshire construction firm has collapsed into administration with all jobs lost.

Managing directors and insolvency practitioners Duncan Beat and Andrew Watling from Quantuma were appointed as joint administrators of CG Godfrey on August 27.

Established in 1973 and based in West Pinchbeck in Spalding, CG Godfrey provided civil, mechanical and electrical engineering services, specialising in vacuum sewerage systems and deep drainage. The company provided services for a variety of customers including local authorities, private clients, water companies, district and county councils.

Turnover at the company was £4.8m in 2023, however, it had recently experienced a loss of income of around £300,000 on two contracts which created cash flow problems that could not be overcome.

The Quantuma team was first engaged in July to provide advice. A marketing exercise was undertaken by Quantuma to try to find a buyer for the company, either as a going concern, or for the business and assets. Expressions of interest were received, and NDAs signed by a number of interested parties. However, no offers were received, and the company had insufficient working capital to continue trading.

Quantuma made all 23 staff redundant on August 27.

Watling said: “It is deeply regrettable that CG Godfrey has been forced to cease trading, due to a series of challenging circumstances. This was a sad ending for a long-established company. Our thanks go to all of the employees who worked hard during a difficult time and gave the company every chance to find a buyer. But unfortunately, it simply wasn’t to be.

“As joint administrators, our immediate priorities have been to provide appropriate support to those whose jobs have been affected.”