Jobs saved as Derbyshire construction company bought after being plunged into administration
Jobs have been saved at a Derbyshire construction company, after a new buyer has taken over the firm which was previously plunged into administration.
Construction and engineering business Whytemount Civils Limited based in Ilkeston, which was formed in 2015, started suffering financial difficulties during the Covid-19 crisis.
The firm struggled due to a number of factors including delays to contracts following government materials, shortage of materials, increased cost of supplies and a lack of skilled labour to complete existing projects.
A ‘significant’ reduction in ongoing contracts also resulted in a decline in turnover and despite company directors raising additional funding and investing personal funds, the business became financially unviable.
Richard Pinder and Sean Williams, of Leonard Curtis Business Solution Group (LCBSG), were appointed administrators of Whytemount Civils on August 4.
The move came after Richard met with directors in July 2021 and the advisory firm liaised with stakeholders in the business.
LCBSG then undertook a marketing campaign in an attempt to sell the business, with 11 interested parties before the construction and engineering firm was sold to Rhino Civils Ltd the same day the administrators were appointed.
The sale saved the jobs of Whytemount Civils’s eight employees.
LCBSG director Richard said: “Unfortunately, market conditions have resulted in Whytemount Civils being unable to continue to operate.
"However, the team here at LCBSG and our partner advisers have delivered the best possible result under the circumstances.
“The transaction had to be completed in a very short timeframe, which was governed by the lack of working capital within the company.
"We believe that the pre-pack has maximised asset realisations for creditors and, most importantly, safeguarded the employees’ livelihoods.
"We’d like to thank the company directors for their cooperation in what was a very distressing time for them.”
Richard Crofts, managing director of Rhino Civils Ltd, added: “We are pleased to have purchased the trade and assets of Whytemount Civils Limited.
“The transaction had to be undertaken in a short space of time due to the constraints and pressures facing the business.
"To have been able to save all eight jobs is very pleasing."