£24m construction firm goes into administration

A £24M-TURNOVER construction firm has fallen into administration after major losses were incurred on two contracts.

Sheffield-based Management Cubed, which maintained a Leeds office also, appointed administrators on 4 November. 42 employees were immediately made redundant, with 16 on hand to help administrators.

The company was a principal contractor managing construction and fit-out works in several sectors including retail, education and medical.

Directors felt that the company could not continue to trade without worsening the position of creditors and they appointed Keith Marshall and Gareth Harris of RSM Restructuring Advisory LLP as joint administrators after major losses on two contracts were brought to light.

Keith Marshall, RSM restructuring advisory partner and joint administrator, said: “The construction sector is facing challenging trading conditions, with contractors often having to take disproportionate financial risk on some contracts.
“On this occasion, the Directors of Management Cubed have acted quickly when the losses became clear and taken the difficult decision to place the Company into administration.

“It’s early days, but we are working with our professional advisors to review the status of the current contracts with a view to maximising realisations for creditors.”