Fri, 09 Sep 2022 | ADMINISTRATION
National roofing services provider Avonside Group has fallen into administration, with administrators from Begbies Traynor in the process of selling parts of the business. The group, which is based in Greater Manchester, fell into administration after being unable to secure the funding it required to continue trading.
Kirstie Provan and Gary Shankland of Begbies Traynor have been appointed as joint administrators to the group and several subsidiaries. A spokesperson for Begbies Traynor said in a statement: "The group experienced a period of disrupted trading during the pandemic which, alongside margin squeeze, the impact of underperforming divisions and financial reporting issues, resulted in a requirement for extended working capital facilities.”
"Despite extensive efforts from the management team, shareholders and advisers, the group has been unable to secure the necessary funding from existing stakeholders, or third parties, to effect the required turnaround and enable continuation of trade in the current form."
The company, which has 39 UK branches, operated from three divisions: Avonside Roofing; Avonside Energy and Avonside Plumbing. The joint administrators have managed to secure the sale of nine Avonside Roofing branches via an accelerated sale process. The branches have been sold to an industry buyer and will continue as a going concern.
The joint administrators also remain in talks to sell the remaining branches of the group’s energy division, with the spokesperson saying: "The group's Energy Division continues to operate out of its seven branches whilst negotiations continue to sell this division solvently. Negotiations are advanced and it is hoped that these will be concluded successfully over the next 24 hours."
However, the joint administrators have been unable to find buyers for the remaining branches within the roofing and plumbing divisions, with these sites expected to close imminently.
Read more about the factors affecting the UK construction sector.
Click here to view the UK's latest distressed businesses.
View recent UK administrations.
This well-established, family-run joinery and building contracting business in Essex, founded in 1998, offers a unique opportunity for relocation and growth.
This is a unique opportunity to acquire a well-established fencing contractor and installer business with a strong reputation and client base.
The company presents a unique opportunity with over five decades of expertise in groundworks and civil engineering, serving a diverse range of clients in the public and commercial sectors.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.