Liquidation for £35m construction firm

A LEEDS contractor has entered liquidation after it suffered “catastrophic” losses at a London hotel job, costing 95 jobs.

The company appeared to be in trouble in September 2016 when it ran into difficulties at its London & Regional on the Cumberland Hotel in Marble Arch project.

At that point, it was running three months behind schedule, according to Construction Enquirer.

A dispute with the client meant that the company suffered a “catastrophic” loss of cash flow. It meant Bay was unable to continue to trade given the lack of resources and time to challenge the actions of the client.

The company was closed on 13 September by the directors with all employees being made redundant.

Keith Marshall and Gareth Harris of RSM Restructuring Advisory LLP were appointed Joint Liquidators of Bay Construct Limited on 3 October 2016.

The £35m-turnover company had 95 employees and specialises in construction and fit out projects ranging from £1m to £6m.

Keith Marshall, RSM restructuring advisory partner and joint liquidator, said: ‘In recent months, we have seen an increase in disputes between clients, main contractors and subcontractors on large scale construction projects across the sector.

“In the case of Bay Construct, whilst attempts were made to stabilise operations and seek to resolve the dispute the impact spread to other contractors who failed to pay and the directors were left with no option but to close the business resulting in 95 redundancies.”