The collapse of a Hampshire construction firm into administration has left its creditors up to £12 million out of pocket.
Laishley went into administration after it had been issued with a winding-up order
from several irate creditors. The administrators at Vantis have made the workforce redundant.
Administrator Frank Wessely explained that mounting problems at the company included the loss of a contract, which led to poor cashflow; while severe weather conditions in December last year and January this year caused crippling periods of inactivity meaning time and cost overruns. The influx of new orders has also been hit by the recession.
He added that the reasons for the administration is to "achieve a better realisation for creditors than would otherwise be the case if the company was to be placed into liquidation without first being placed into administration."
The effects of Laishley's inability to repay its creditors have already become apparent, with one supplier allegedly entering administration, while others have been left with debts of up to £150,000.
Established in 1985, the builder provided its services to businesses in the commercial, healthcare, education, residential and leisure industries. The most recent accounts for the firm published for 2007, reveal a loss of £279,000 on revenues of £8.5 million.