Electrical contractors enter administration

A mechanical and electrical contracting specialist based in the West Midlands has fallen into administration.

George Birchall Limited, which had been trading for nearly 40 years prior to administration, was forced to cease its operations as a result of “poor trading conditions” following the cancellation of numerous large orders.

Corporate recovery specialists Butcher Woods, headquartered in Birmingham, have been appointed as administrators. To assist them, some members of the George Birchall staff in the Newcastle-upon-Lyme and Edinburgh offices have been retained to support the winding down process and with realisations.

Director Ian Birchall said: “After 38 years of delivering high quality mechanical and electrical design and installation projects to many well-known companies, it is with great sadness that we announce the closure of George Birchall Limited, our contracting arm based in Newcastle-under-Lyme.

“Due to recent economic uncertainty, the company had encountered very difficult trading conditions leading to unprecedented slippage in orders and cancellations.

“We regret that despite all our best efforts to help keep the business going it became impossible to continue.”

Although the company has ceased trading, its larger maintenance division and management facilities in London and Newcastle-upon-Lyme will remain open and continue trading. Combined, the company will continue to employ north of 400 people.

Director of Butcher Woods, Rod Butcher, commented: “Sadly due to its financial position and its inability to meet ongoing commitments, George Birchall has entered administration. Butcher Woods is now seeking to maximise realisations for creditors by seeking to find other ways of fulfilling ongoing contracts.

“We will be contacting all creditors over the coming days to explain what steps they should take.”

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