Herbert Baggaley Construction Limited (00271618): administration
- Status
- Administration ended
- Administration began
- 2013-02-01
- Administrators' firm
- KPMG
- Formerly
- Herbert Baggaley Limited
- Incorporated
- 1932-12-28
- Location
- Nottingham
- Industry
- 41201 Construction of commercial buildings
Why it went into administration
- Competition / price pressure
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Sustained trading losses
From the administrators' statement
The roots of the Group’s business date back to 1908 Its principal activity was that of building construction, associated construction services and property development The business operates from freehold office premises owned by BGL at Melton Way, Mansfield, and was contracted on a wide range of public and private sector construction contracts, including work under local authority framework agreements, primarily in the East Midlands, but also throughout the UK
The general downturn in the economy and competitive pressure in the construction market resulted in the Group experiencing a gencral decrease m both its level of activity and gross margin over recent years, the impact of this being the Group incurring losses of approximately £1m per annum in both 2011 and 2012
Duc to the financtal difficulties facing the Group, the Group and the Bank initially engaged KPMG during April 2012 to perform a review of the business and to consider a turnaround plan that management had presented to the Bank (including a management buyout) alongside other potential strategic options
Administrators' statement of proposals (2013-04-04) · Companies House register