Wed, 09 Jun 2021 | ADMINISTRATION
Merseyside highways and utility contractor Vital Infrastructure Asset Management (VIAM) has announced that it has fallen into administration.
The firm, which traded as King Construction until two months ago, has recently rebranded following significant growth over the past three years and now employs 300 staff.
The company has revealed that it has appointed Daniel Smith and Clare Boardman, senior managing directors at Teneo Restructuring, as administrators.
According to the administrators, VIAM's trading performance has been impacted by a number of disputes with customers, as well as the impact of the COVID-19 pandemic.
These issues have reportedly resulted in severe liquidity pressure, which has led to unrecoverable financial difficulties.
Commenting on the announcement, Mr Smith stated that it was unfortunate that the company's rebranding had not been enough to help the business negotiate the difficulties faced by the firm - and the industry as a whole - in the past 12 months.
"This is unfortunately a very challenging period for the group's stakeholders, and in particular its employees," said Smith. "Despite the best efforts of the directors, the group was unable to generate the cash needed to sustain its trading operations.
"Our immediate focus is on supporting the group's employees to ensure all relevant claims are submitted as promptly as possible."
Based in Speke, the civil engineering firm went through a change in ownership in December 2019 when four of its directors and managing director Dave Prescott secured an £11.6 million management buyout from previous owner Mark Doyle.
Since this changeover, the firm has secured long term framework contracts with Liverpool City Council and United Utilities that have seen the company's annual turnover jump from £20 million to £55 million.
Read more about how issues facing the UK's construction sector could spur dealmaking opportunities.
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