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.
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