Construction firm, Pochin, which was founded in the 1930s has gone into administration, leaving 120 jobs at risk
The family building firm, Pochin, based in Middlewich has called in Grant Thornton UK LLP as administrators.
Directors said the challenges faced by the group’s two main companies and six subsidiaries were “insurmountable”.
Administrators Grant Thornton UK said “the legacy issues from earlier contracts became too great a burden leading to difficult trading conditions”, despite new business secured over the past year.
A statement released on behalf of Pochin says the decision has been made despite their best efforts, and comes amid difficult trading conditions.
The statement said: “In the past year the construction business, with a new management team on board, had established a platform for growth, developed excellent client relationships and secured a pipeline of profitable new work and opportunities.
“However, despite that renewed optimism for the future, the legacy issues from earlier contracts became too great a burden leading to difficult trading conditions. The group’s board explored a number of options in an effort to preserve the group’s trading status over recent months, including injections of significant levels of capital from shareholders and the sale of the group’s property portfolio.
“Despite these efforts, the impact of the challenges have proven insurmountable and the difficult decision was reached by the directors to place a number of entities in the group into administration. This includes the main trading entities of Pochin’s Ltd, Pochin Construction Ltd and six other subsidiaries.”
Administrator Sarah O’Toole, commented: “Whilst it is very early days, this may result in a number of redundancies and the companies ceasing to trade, the joint administrators will continue to review options to ensure the best possible outcome for creditors.”
The firm had been building retirement properties in Southport and Chester as well as a hotel in Stoke-on-Trent.
Developers Genr8, which contracted Pochin to construct the £20m Hilton Garden Inn and 151 apartments in Hanley, said it would pursue the completion of the project as planned.