North East engineering firm enters administration with 300 jobs at risk

Wed, 11 Oct 2017 | ADMINISTRATION

An engineering firm in the North East of England has called in the administrators - putting more than 300 jobs at risk – after cash flow problems hampered its profitability.

The Owen Pugh Group, which was founded in 1946 and has sites in Dudley, Blaydon, Stockton-on-Tees and Sunderland, ran into money problems after taking on loss-making projects.

Grant Thorton were summoned as administrators earlier this week, with Christopher Petts and David Dunckley taking control of the business’s fate.

Since then, most of Owen Pugh’s business units – Owen Pugh & Company, Owen Pugh Civil Engineering, Owen Pugh Contracts and HCS Drain Services – have ceased trading, with some 257 employees already being made redundant.

Owen Pugh Aggregates, which operates a quarry near Sunderland, is still running and its 30-person workforce kept on to help Grant Thornton find a buyer. Nine staff are also still working at Owen Pugh’s head office.

Petts said that he was hopeful a buyer might be found for at least part of the group, explaining that unsuccessful projects in 2017 had seen the firm’s cash position deteriorate significantly in recent months.

"Despite having sourced additional external investment during July 2017, cash pressure intensified culminating in parts of the group being presented with winding up petitions in recent weeks, which they have been unable to satisfy.

"I am working with the employees and customers to establish if there are elements that can be rescued, and a buyer located, in very short order."

A number of prospective buyers are reported to have expressed an interest in buying parts of the business and its assets.

Search businesses in administration
Subscribe to the Business Sale Report


Share this article



Latest Businesses for Sale

Roofing Contractor
North East, UK

Provides roofing services and safety system products such as slating, tiling, waterproof liquid roofing, over cladding, sheeting, felting, safety netting and guttering. Works with clients from sectors such as education, healthcare, national retail ch...

Asking Price: Offers Invited
Turnover: £5,600,000

FREEHOLD


Air Conditioning, Heating & Ventilation Contractor
West Midlands, UK

Air conditioning, heating & ventilation contractor offering consultancy, design, sales & installation to commercial, industrial & residential properties. Supplies & installs market leading products to SME’s & blue-chip customers operating in a range...

Asking Price: Offers Invited
Turnover: £1,770,000

Supply & Servicing of Vending Machines & Related Equipment
East Anglia, UK Wide

Supplies, services & maintains a range of vending equipment such as coffee machines, snack vending machines, cold drink machines, water coolers & slush machines. Companies involved in the supply, filling & servicing of food & drink vending machines,...

Asking Price: Offers Invited
Turnover: £800,000


View more businesses for sale

News Search

Latest News

 
21
 
Nov
 

Buyer sought as North East contractor enters administration | ADMINISTRATION

A buyer is being sought for Pro-Fix Installations after the ...

 
20
 
Nov
 

Swindon waste-to-gas plant construction to resume after administration | ADMINISTRATION

An unfinished waste-to-gas facility in Swindon has secured &...

 
19
 
Nov
 

UK government set to approve Cobham takeover | BUSINESS SALE

The British government is poised to approve the $5 billion t...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
21
 
Nov
 

Buyer sought as North East contractor enters administration | ADMINISTRATION

A buyer is being sought for Pro-Fix Installations after the ...

 
20
 
Nov
 

Swindon waste-to-gas plant construction to resume after administration | ADMINISTRATION

An unfinished waste-to-gas facility in Swindon has secured &...

 
19
 
Nov
 

UK government set to approve Cobham takeover | BUSINESS SALE

The British government is poised to approve the $5 billion t...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources