Fit-out specialist ceases trading and prepares to call in administrators

Styles & Wood, the Greater Manchester-based fit-out specialist, is to call in administrators and has ceased trading.

Craig Eastwood, chief executive of its parent, Extentia Group, described the action as “difficult, but correct and responsible”.

He confirmed Extentia’s intention to file to appoint administrators.

Styles & Wood had suffered cash flow problems on a number of recent contracts.

The firm had a £38m refurbishment contract at Liverpool’s iconic India Buildings terminated last September.

It lost the contract after a series of delays related to the discovery of asbestos.

Caddick was appointed as the replacement contractor.

Styles & Wood said it was planning to pursue legal action after being kicked off the job to fit-out and refurbish the Water Street office block.

A spokesperson for the firm said: “We consider the termination of our contract to be wrongful and we’re currently taking advice on next steps.”

Earlier in the year the firm was replaced by Russells on Hyphen, Boultbee Brooks’ 52,000 sq ft office refurbishment on Mosley Street, Manchester.

In November, Tony Lenehan, chief executive, and Phil Lanigan, chief financial officer, of Styles & Wood and parent company Extentia Group, both left the business.

In a statement, Mr Eastwood said: “Overall trading conditions within Extentia Group are positive, with strong year on year growth across the majority of businesses, and each having solid forward pipelines.

“These include Extentia’s Furniture, Fixtures and Equipment (FF&E) businesses Southerns Broadstock and Ralph Capper, together with Extentia’s Professional Services entities that include Space Invader Design, Keysource, GDM and Concourse Facilities Management.

“In contrast, Extentia’s programme management business, Styles & Wood, has experienced significant cashflow issues following a handful of large developer-led projects.

“By nature, this type of work is complex with high revenues and low margins; a situation inherited by Extentia Group’s new leadership team who succeeded predecessors at the end of November 2019.

“Unfortunately these cashflow issues have become too significant for Styles & Wood to sustain, and so the difficult but correct and responsible decision has been made to file an intention to appoint administrators and discontinue all programme management activities.”

He added: “Extentia Group’s FF&E and Professional Services businesses remain unaffected, and with the continued support of our stakeholders and funders we are very confident about the future.

“All of our FF&E and Professional Services businesses are trading well and we are firmly placed to capitalise on the pipeline of opportunities that have been secured.

“Our focus now is to work with our stakeholders and advisers to explore options for the Styles & Wood businesses, making it a priority to protect the interests of our colleagues and those employed within connected Styles & Wood divisions.”

Styles & Wood is based in Cross Street, Sale, and has offices in Nottingham and London.

In December 2017, it agreed to a £43m cash takeover offer by venture capitalist Central Square.