Administrators from KPMG have been officially appointed to oversee the collapse of Cruden Construction, as 100 employees are made redundant
Warrington-based Cruden Construction has fallen into administration with the loss of around 100 jobs on Friday (31 July).
Joint administrators Howard Smith and David Costley-Wood were appointed for Cruden Group Limited, Cruden Construction Limited and Cruden Property Services Limited.
Cruden Construction operated within the construction and property services and employed 126 people.
100 employees were made redundant on the appointment of administrators, with the remaining staff being retained to support the wind-down of the business.
Agents have been appointed to realise the value in the group’s construction and maintenance contracts.
The administrators confirmed that the company had been placed into administration due to back of losses on a number of contracts and additional costs caused by the Covid-19 crisis.
KPMG said: “Following losses on a number of contracts and additional costs caused by the Covid-19 pandemic, due to contract delays, the directors took the difficult decision to place the company into administration.
“Regrettably, upon appointment the administrators made circa 100 employees redundant, with the remaining staff being retained to support the wind-down of the business.
“Agents have been appointed to realise value in the group’s construction and maintenance contracts, alongside other tangible assets including a freehold property.”
Howard Smith, associate partner at KPMG and joint administrator, commented: “While trading had been challenging for some time, the impact of Covid-19 was the final straw.
“Discussions to sell the business did not progress, leaving no option but to close.
“Our priority over the days ahead is to support those members of staff who have been affected by redundancy, providing them with any assistance they need.”