George Birchall Service falls into administration

Grant Prior 6 years ago
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Building services maintenance contractor George Birchall Service has been placed into administration.

Hundreds of workers at the firm were sent home without pay last Friday as notifications were sent out that they had been formally made redundant.

The services arm of George Birchall employs 400 people on sites across the country.

Letters have also been sent out by administrator FRP Advisory calling on workers to return tools, equipment and phones.

The firm was left as the main trading business when its sister mechanical and electrical contracting division was placed into administration last September with the loss of 141 jobs.

At the time director Ian Birchall said: “We would like to make it clear that our larger facilities management and maintenance business, George Birchall Service Ltd continues with business as usual and continues to employ over 400 people at its offices in Newcastle-under-Lyme and London.”

One worker said: “We were told on Friday that we wouldn’t be paid and some people were escorted off site.

Another told the Enquirer: “This has happened towards the end of the month and left us all out-of-pocket.”

FRP Advisory said it was now assessing options for the transfer of remaining customer contracts and a small number of employees at the company’s Newcastle-under-Lyme and London offices have been retained to support an orderly wind down.

Steven Stokes, partner at FRP Advisory in Birmingham, said: “George Birchall Service had suffered severe cashflow pressures in recent months, which forced the business into administration.

“Every attempt had been made by the directors to secure a more positive outcome for all concerned, however, when it became apparent in recent days that a sale of the business could not be achieved, the extremely difficult decision was made to place the company into administration.

“Our immediate priority is now to support affected employees and work closely with clients to ensure the smooth transition of contracts.

“We are hopeful that this will include the further transfer of a significant proportion of the workforce to alternative contractors.”

Companies House records show the latest accounts for George Birchall Service Ltd are overdue.

Results for the year to March 31 2017 show the company made a pre-tax profit of £246,000 from a turnover of £21.7m.

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