George Hurst & Sons Limited (00828200): administration
- Status
- Administration ended
- Administration began
- 2017-04-13
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1964-11-20
- Location
- Sheffield
- Industry
- 41202 Construction of domestic buildings
Why it went into administration
- Competition / price pressure
From the administrators' statement
The Company’s current management team acquired its business and assets in 2008 via a management buyout.
-3In hindsight, the director has advised that the terms of the buyout ultimately had a crippling effect on the business as the Company's once healthy reserves were extinguished and a debt of £900k to the former owner was created. This left the Company unprepared to deal with the economic downturn and struggling to compete on price with its competitors due to the costs of servicing the historic debt.
In 2015 the Company failed to retain its membership of the Yorbuild framework because it couldn’t match the price reductions of its competitors. The Yorbuild framework projects historically accounted for approximately 70% of the Company's turnover and the director therefore commenced a sales initiative to try to replace the lost work.
Administrators' statement of proposals (2017-06-11) · Companies House register