74 jobs axed as Elliott Thomas falls into administration

Parts of construction logistics and building business Elliott Thomas have fallen into administration after a payment row on a single project tipped the firm over the brink.

Around 74 staff have been laid off by administrators from London insolvency specialist Carter Backer Winter, although when self employed workers are included around 300 are affected.

The £54m turnover group’s key divisions Elliott Thomas Logistics and builder Prime Construction are now in administration.

But group director John Self and a co-investor Linden Scaffolding managed to save around 47 jobs in an eleventh hour deal to buy the Taylor Hoists name and Rainsford Contracts joinery business.

A spokesman for CBW said: “It’s unfortunate that a settlement couldn’t be reached on one of the group’s major contracts, which contributed significantly to the administration of certain Elliott Thomas Group companies.  

“It hasn’t been possible to secure a sale of the business of these entities, which provided construction and logistics services, and accordingly 74 redundancies were made shortly following our appointment.”

 “We are however pleased to confirm that it has been possible to secure a sale of the hoists division of Elliot Thomas Limited to a new company set up by one of the former directors and a co-investor. 

“This should preserve around 25 jobs and enable a return to be made to creditors.  In addition, Rainsford Contracts  has been sold on a solvent basis as a share sale by ETG in administration, which should secure a further 22 jobs and keep its creditor base intact.”

Problems at the Prime Construction business, which was established back in 2012, dragged the whole group into administration.

The building firm became involved in a payment dispute with its client at the £11.9m Bear Gardens project in London’s Bankside.

The 75-bed apart-hotel scheme was 37-weeks late which led to claims of around £2.5m.

The dispute went to adjudication but bankers for Elliott Thomas pulled the firm’s overdraft facility while discussions were still ongoing.

The client on the Bear Gardens job was a Guernsey-based property developer Livingston Trust and RISE was the project manager.

from Construction Enquirer http://www.constructionenquirer.com/2016/11/01/74-jobs-axed-as-elliott-thomas-falls-into-administration/

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