J Garratt Construction Ltd (08153289): administration
- Status
- Administration ended
- Administration began
- 2020-07-31
- Administrators
- Andrew David Rosler, Thomas Bowes
- Administrators' firm
- FRP Advisory
- Incorporated
- 2012-07-23
- Location
- Bolton
- Industry
- 41202 Construction of domestic buildings
Why it went into administration
- Cash flow / liquidity pressure
- COVID-19
From the administrators' statement
3.1 In 2014 the Company took out a loan from Funding Circle and requested an overdraft from the bank which allowed them to take on more work and employ more staff. The business’s average monthly contracts were between £200,000.00 and £300,000.00 and in 2015 the business had its first million-pound project. To meet the demands of the increased workload the Company obtained another loan for £100,000.00 from Funding Circle to help with any cash flow problems.
3.2 From 2017 the Company continued to trade well and undertook a number of major projects. At the peak of their workload, the Company employed 40 members of staff. The Business continued to develop and invested in more vehicles, equipment, and staff. However, the Company also had two large projects that cancelled the work on short notice, meaning J Garratt Construction Limited had too many staff for the amount of work. Major concerns were also raised on 4.
3.3
Administrators' statement of proposals (2020-10-22) · Companies House register