Shaylor Group: 200 jobs lost as Black Country building firm goes into administration
The construction group working on the delayed revamp of Wolverhampton Civic Hall has gone into administration - costing around 200 people their jobs.
Administrators have been appointed to work on the closure of Shaylor Group which has its headquarters in Aldridge, it was confirmed today.
The group was working on large-scale projects including the delayed £38.1 million revamp of Wolverhampton Civic Hall and a major development in Birmingham's Jewellery Quarter.
But administrators from FRP Advisory LLP said the group had recently suffered "severe cashflow pressures" following several project delays.
It is the latest construction and business services firm to hit trouble.
Today it also emerged Kier Group is to cut 1,200 jobs as part of its plans to simplify the business and save on costs.
And the second biggest builder in the UK, Wolverhampton-based Carillion, went into liquidation in January 2018, bringing construction projects across the UK to a halt including work on the Midland Metropolitan Hospital.
'Shaylor staff sent home'
Shaylor Group is understood to have sent staff home at the end of last week after filing an intention to appoint administrators.
Officials have confirmed the company ceased trading on Friday with around 200 employees subsequently made redundant.
However a number of staff continue to work at the company's headquarters to support the administrators.
Raj Mittal and Tony Barrell, partners at FRP Advisory LLP, were appointed Joint Administrators of Shaylor Group Limited today.
The administrators said in a statement: "Shaylor Group had experienced severe cashflow pressures in recent weeks following several project delays.
"After unsuccessful attempts to raise additional funding, the directors took the difficult decision to place the company into administration.
"The business ceased to trade on 14 June 2019 and approximately 200 employees were subsequently made redundant.
"Following their appointment, the Joint Administrators are now in discussions with the Company’s clients regarding the transfer of sites and are supporting those affected by the closure of the business.
"A small number of employees at the head office in Walsall have been retained to support the administration process."
Raj Mittal, partner at FRP Advisory in Birmingham, added: “Despite the efforts of the directors, the financial issues facing the company were not able to be resolved and resulted in the decision to place the business into administration.
“Our immediate priority is now to support those affected and work closely with the Redundancy Payments Service to ensure that employees receive every support at this difficult time.
"We will also be working closely with clients to ensure the smooth transfer of sites."
Pre-tax profits drop at group
Shaylor Group, which has its headquarters at the Anchor Brook Business Park, in Stubbers Green, provided design, construction and maintenance services to clients across the UK from its offices in the Midlands and London.
In April it was reported that turnover at Shaylor had reached £152.7m in its last financial year.
The figure for the year to the end of September was up from £144.3m in 2016-2017.
But pre-tax profits fell from £4.8m to £2.4m for the construction group which was formed in 1968 and employs around 260.
New Civic Hall contractors needed
The Express & Star revealed in March that Shaylor Group would be carrying out the revamp of Wolverhampton Civic Hall, which is due to reopen in the autumn of 2021 – five years later than originally planned.
The cost of the work has already leapt to £38.1m - almost four times its original budget - and now Wolverhampton Council is seeking a new contractor. Despite this, a council spokesman today said they would be aiming to "stick as closely as possible" to the revised completion date.
They also revealed that the council had carried out official financial checks on Shaylor in February which had raised no cause for concern
The spokesman said: “We are very disappointed to hear the news about Shaylor Group and we feel for their employees – particularly those local to the city of Wolverhampton.
“In relation to the Civic Halls, we were concerned four months ago and carried out the latest of our regular financial and sustainability checks on Shaylor Group.
"This represents a request for legal confirmation from the company’s solicitors and accountants. Based on this there was no cause for concern.
“The Civic Halls remain a key priority for us and we are determined to deliver our ambitious £38m improvement and renovation plans that will make the halls a world-class venue.
“The first phase works have been completed and work is set to begin on phase 2 - the major improvement works.
“We will now work as quickly as possible to find a new contractor to continue these crucial works and are aiming to stick as closely as possible to the completion date we have been working to.
“Any affected Shaylor Group employees living in the city of Wolverhampton are urged to visit www.wolvesworkbox.com to find out more about the employment support available to them.”
As part of the revamp, which also involves the neighbouring Wulfrun Hall, the combined capacity of the halls will increase to 4,600 standing and 3,130 seating.
Other big projects Shaylor was working on include the renovation of the Silverstone Experience, a museum located next to the famous Northamptonshire racetrack, and a 156-apartment mixed-use development for Black Swan Property in Birmingham's Jewellery Quarter.
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