Forrest falls into administration

Contractor Herbert T Forrest Limited has lost its fight for survival after administrators were appointed to the company.

FRP Advisory LLPis now in charge of the business which employs around 230 people.

Some contracts have been sold to Engie saving 64 jobs in the refurbishment and energy divisions.

Joint Administrator Anthony Collier said: “Despite the best efforts of the directors, the legacy issues facing the company have been unable to be resolved, resulting in an unsustainable financial situation.

“We have successfully agreed a sale of certain contracts to Engie Regeneration Limited, which will preserve 64 jobs and provide continuity for customers in the refurbishment and energy divisions

“Unfortunately, it has not been possible to secure a sale for the construction and housing elements of the company, and we are working with all stakeholders to deal with the orderly wind-down of these divisions.

We are pleased that during this process, working alongside management, we have assisted a large number of employees find alternative employment within the industry and will continue to work closely with agencies, including the Redundancy Payments Service, to ensure that employees receive every support at this difficult time.”

In March 2017 the company was refinanced in order to address cash pressures caused by a series of losses on refurbishment contracts.

The administrators said that since then the business has continued under new management with a strategy focused on growth in the refurbishment and energy divisions.

It added that delays and operational issues on three construction sites which were started before the refinance, combined with incorrect pre-construction estimates across new projects, resulted in unsustainable cash-flows and the need to appoint administrators.

Interested parties or suppliers seeking further information should contact the FRP Advisory LLP Manchester office 0161 833 3344.

from Construction Enquirer http://www.constructionenquirer.com/2018/12/07/forrest-falls-into-administration/

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