Thu, 29 Feb 2024 | ADMINISTRATION
Fox Industrial Services Limited, a construction firm based in the West Midlands, is set to be wound down after falling into administration. The Redditch-based business had been operating for more than 20 years, but succumbed to financial challenges that it had faced in recent times.
The company had been impacted by COVID-19-related delays that affected key contracts, with the firm’s problems exacerbated further by subsequent inflationary pressures. FRP Advisory’s Ben Jones and Rajnesh Mittal were ultimately appointed as administrators on February 20.
Prior to their appointment, the company’s workforce departed the business and the joint administrators will now begin work undertaking an "orderly wind down of the business and maximise the return to its creditors".
In the company’s accounts for the year ending March 31 2023, its total assets were valued at approximately £1.5 million. However, in excess of £1.6 million was owed to creditors at the time, with net liabilities amounting to slightly over £228,000.
Fox Industrial Services was part of the wider Fox Construction Group, which will continue trading as normal following the administration.
The UK construction industry is the sector worst affected by the UK’s current high levels of insolvencies, with 4,276 construction companies falling into administration in the 12 months to the end of Q3 2023 (18 per cent of the UK total in that time).
Despite the UK showing signs of economic improvement towards the end of 2023 and into the start of 2024, insolvencies in the construction sector are forecast to continue rising before they improve. According to Begbies Traynor, there were in excess of 77,000 UK construction companies in “significant financial distress” in Q4 2023.
Discover how rising insolvencies are impacting sectors such as construction
Find out more about forecasts for UK insolvency levels in 2024
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