Property maintenance group saved from administration
A STAFFORDSHIRE property maintenance company has been saved from closure after administrators secured the sale of the business, safeguarding almost 90 jobs.
Tracey Pye and Dermot Power, joint administrators from BDO in Manchester, were appointed to look after BGC after work dried up.
On appointment, the administrators were able to secure the sale of the business to its original founder, Mark Sims. The deal safeguarded all jobs and apprenticeships at the firm.
BGC, based in Stoke-on-Trent, was founded in 1991 and was acquired by plc Southern Bear – now Environ Group (Investments) Plc in 2006.
BGC had been providing wider financial support to Environ and other group companies. However, the onset of the economic slowdown combined with poor trading conditions in the engineering sector and a reduction in Government funding for the Warm Front Scheme, saw it lapse into administration earlier this month.
Ms Pye, BDO business restructuring partner, said: “We are pleased to have concluded the sale of BGC Ltd, preserving 88 jobs. The sale was the best option to secure the future of the business, which has been exposed to the difficult economic climate as well as the associated costs of the (Environ) group. This announcement enables the business to move forward.”
Mr Sims, purchaser of the business and owner of new company BGC Group (UK) Ltd, said: “In the present economic climate, and with a lack of support from the (Environ) group, there was no choice but for the business to undertake this restructuring.
“I started BGC in 1991 and the business always had potential – and I know it now has a bright future. As a local Stoke on Trent resident I am committed to protecting local jobs, extending support to the communities we serve, and returning the business to the strong financial position it enjoyed under my original ownership.”
