R.S. Cook & Sons Limited (01046964): administration
- Status
- Administration ended
- Administration began
- 2019-02-07
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1972-03-21
- Location
- Salisbury
- Industry
- 41201 Construction of commercial buildings
Why it went into administration
- Loss-making contracts / project overruns
- Bad debts / customer insolvency
- Credit insurance / supplier credit withdrawn
From the administrators' statement
The Company was incorporated on 21 March 1972 as a family run business specialising in ground works and construction. It was based in Bridgewater and operated initially in the local vicinity but expanded out as far as Bristol and Exeter in recent years.
The Company began to experience financial difficulties initially as a result of underquoting at tendering stage, the non-release of retentions on some of their larger contracts, and further travelling distances to sites in Bristol, impacting on profit margins and underquoting at tendering stage.
In August 2018 the directors negotiated a 3 month payment pian with some of their larger creditors, paying in the region of £150,000 a month to clear their debts, the Company completed the plan. In December 2018 the Company obtained a loan of £360,000 from The Funding Circle to aid with cash flow whilst negotiations continued surrounding the release of retentions; however this further increased their financing obligations. By January 2019 creditors had begun to increase again and all major supplier accounts were put on stop.
Administrators' statement of proposals (2019-04-16) · Companies House register