Severn Group Limited (00835098): administration
- Status
- Administration ended
- Administration began
- 2019-07-04
- Formerly
- Severn Electric Company Limited
- Incorporated
- 1965-01-22
- Location
- Droitwich
- Industry
- 43210 Electrical installation
Why it went into administration
- Loss-making contracts / project overruns
From the administrators' statement
3.1 The circumstances leading up to cessation of trade are detailed in paragraph 2.1 above.
3.2 Following a request from the directors’, the Administrator met with the directors on 3 July 2019 to discuss the financial position of the company. The directors advised that a large payment from one of the company’s main contractors had been withheld and that without that payment the company was not able to meet its monthly wage commitments. In addition, the company was due to make critical payments to certain trade creditors which it was also not able to honour.
3.3 As a direct result the directors engaged MB insolvency on 4 July 2019 to act as proposed Administrators for the company. The Notice of Appointment of Administrator was filed in the Business and Property Courts in Birmingham on the same day under case number 553 of 2019, whereby Mark Bowen was appointed as the Administrator.
Administrators' statement of proposals (2019-09-06) · Companies House register