Fri, 29 Oct 2021 | ADMINISTRATION
Blackpool-headquartered Create Construction has entered administration amid rising construction industry costs and the impact of COVID-19. The company, which was part of the Create Group and specialised in student accommodation, hotel and private rental projects, has appointed RSM Restructuring Advisory to act as administrator. Other companies in the Create Group are not affected.
The company had been experiencing rapid growth in recent years, with turnover growing from £33 million in 2017 to £92 million in 2020. In its most recent accounts, Create Construction reported post-tax profits of £483,177, with net assets valued at £2.42 million.
Joint administrator Chris Ratten said that RSM were working to reassign the company’s live projects, with the hope of transferring many of its onsite roles to other companies. The firm’s live projects include the construction of an Ibis hotel at Edinburgh airport, a new-build Hampton by Hilton hotel in Trafford, Greater Manchester and an extension to the chain's hotel in Blackpool, Lancashire.
Regarding the problems faced by the company, Chris Ratten said: “Create Construction Limited has recently encountered a number of issues that have led to significant cashflow pressures. The business has been adversely impacted by increasing costs of building supplies and subcontract labour.”
In a statement, Create Construction CEO Paul Mathison said: “The pandemic has severely affected both our clients and our supply chain’s ability to meet their contractual arrangements. An overrun in projects in both time and budget, a number of supply chain failures and delays to a secured pipeline of projects, has ultimately made the company unviable.”
Read more about pressures impacting the UK construction sector
View the latest distressed UK businesses here.
This is a unique opportunity to acquire the charming Creebridge House Hotel, a family-owned establishment nestled in the picturesque setting of Dumfriesshire.
FREEHOLD
Charming and thriving hotel situated in a bustling tourist destination in Kirkcudbright offers a unique investment opportunity.
FREEHOLD
An award-winning and historic village inn near Turnberry, South Ayrshire, is available for acquisition, offering a unique opportunity to own a piece of local heritage with potential for further development.
FREEHOLD
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.