The Construction Partnership UK Limited (CPUK) has filed for administration following financial issues caused by a combination of problem contracts and bad debts
The Construction Partnership UK Limited (CPUK) has filed for administration after 20 years of providing building services across both the private and public sectors
On 24 April, Steven Muncaster and Sarah Bell of Duff & Phelps Ltd were appointed as joint administrators of CPUK.
CPUK is a privately-owned contractor with over 20 years of experience delivering a wide range of building services across both the private and public sectors. The company mainly operates across the North of England and the Midlands undertaking new build and refurbishment contracts.
Problem contracts and bad debts
Steven Muncaster, of Duff & Phelps, said: “CPUK has come under increasing pressure over the past 12 months due to a combination of factors including an increasingly competitive market and raw material price increases.
“The company exhausted all options in terms of finding a solution to the current financial issues, caused by a combination of problem contracts and bad debts.
“The combined effect of these, coupled with the uncertain outlook for the construction industry in the wake of the coronavirus pandemic has caused a drain on the company’s cash reserves and it had no other option but to appoint administrators.”
Due to the current and ongoing coronavirus pandemic, the business temporarily ceased to trade, and all staff were placed on furlough leave by the company prior to the administration.
The employees of CPUK will remain on furlough leave and the joint administrators are now looking at a sale of the business and assets of the company as a going concern in the first instance.