Member Article

Local Construction firm goes into administration

Sad news for the North East Construction industry as P Whelan went into administration yesterday.

Following the appointment of administrators from PwC, the business has ceased to trade with immediate effect and 49 employees have been made redundant.

While the company reported 2010 profits of around £18 million, the company, like many others in the construction sector has felt the pinch of the recession.

Difficult trading conditions over the past year along with the decline in amounts of work available have placed P Whelan’s margins under significant pressure, leading the company to make the difficult decision to bring in the administrators.

Nick Reed, joint administrator at PwC in the North commented: “We have rapidly assessed the ability of the company to meet outstanding customer orders but unfortunately have concluded that the financial position of the company of the company means that the business is not in a position to do so.”

“ We are now attempting to secure a buyer for all or part of the business and assets. Clearly if any business has an interest in acquiring all or part of the business and assets we would be very keen to hear from them“

This was posted in Bdaily's Members' News section by Ruth Mitchell .