Create Construction calls in administrators, blaming pandemic disruption

Hampton by Hilton Hotel, Blackpool

Create Construction has called in administrators, saying the business has been severely impacted by the effects of the pandemic.

It said other companies within the Blackpool-based Creare Group are not affected by the administration, which is being handled by RSM.

Create, which focused on the hotels and student accommodation sectors, said most of its staff have already found other positions.

Earlier this year, in July, Create Construction was appointed by Create Developments to work on the £7m extension of the Hampton By Hilton Hotel in Blackpool. It was also working on sites in Swansea, Liverpool, Leicester, Coventry, Edinburgh, Trafford and Salford.

The £93m turnover firm reported a pre-tax profit of £536,274 for the year to February 29, 2020.

The firm issued a statement, saying: “Following a very challenging trading period for the company, the directors of Create Construction have taken the difficult decision to appoint administrators, having exhausted other options. Other companies within the Create Group are unaffected.

“The pandemic has severely affected both our clients and our supply chain’s ability to meet their contractual arrangements. An overrun in projects in both time and cost, a number of supply chain failures and delays to a secured pipeline of projects, has ultimately made the company unviable.

“We have been working with advisors, clients and funders to facilitate, where possible, the transfer of the contractual position of schemes on site, to allow the completion of these projects and to protect the creditors position as best we can.

“The pandemic has effected every area of our business, from delays in pipeline projects achieving planning approval and concluding funding, to access being restricted or denied into completed operational student accommodation buildings to allow us to complete 12 months’ defects works and to release significant retention monies owed to our supply chain.

“Having set the business up in 2006, we have worked hard to build our reputation in a competitive sector and we are proud of the fabulous schemes that we have delivered over the years.

“The construction industry continues to be hit hard as a result of the pandemic, with significant rising costs and limited resources available. As a consequence, we have seen the failure of some reputable and established companies like ourselves.

“At the heart of Create Construction, was a very talented and loyal workforce, which very much formed the DNA of the business. We take some comfort that the majority of our staff have found new positions and we have no doubt that they will be valuable assets to those companies.

“We would like to thank our wonderful staff, colleagues, clients, consultants and supply chain members with whom we have worked with over the last 16 years.

“The directors will be assisting the administrators to try and obtain the best possible outcome for all parties affected.”