George Birchall Service falls into administration

Grant Prior 6 years ago
Share

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.

Latest news

Four jailed after Keltbray corruption trial

Jail sentences following probe into jobs including Battersea Power Station
2 hours ago

Leeds United unveil stadium revamp design

Club has still to set a timeframe for staged Elland Road upgrade
31 minutes ago

Bowmer & Kirkland boosts margins as profits surge to £69m

Revenue nudges up towards £1.3bn in year of expansion
16 hours ago

Offshore construction starts on £4bn windfarm

Foundations for first of 95 turbines installed: Watch video
15 hours ago

AECOM buys civils consultant Allen Gordon

Global giant acquires Scottish water and energy specialist
15 hours ago

Plans in for £1bn Northern Gateway site in Manchester

Plan for 500-acre manufacturing and logistic park advance
15 hours ago

RED wins £31m London Shoreditch student digs job

Two extra floors will be added to Willen House scheme
16 hours ago

Deconstruct handed £12m Grenfell demolition

Firm maintaining building awarded job without bid race to speed process
16 hours ago

Sizewell site workers get made to measure PPE

Bespoke fitting service on offer at new Bryson branch
16 hours ago

Comment: Gateway is acting like a barricade

Contractors left banging their heads on an (unbuilt) brick wall
4 days ago

Final phase of £1.5bn Elephant and Castle revamp hits planning

Get Living submits revised plan for 500 homes and 450-bed student block
4 days ago

Ealing backs final phase of £1.3bn estate rebuild

Friary Park estate rebuild in Acton reaches end stage
4 days ago

Green light for scaled-down Nottingham student tower

Glasshouse Street scheme will deliver 247 student rooms
4 days ago

Aston Villa to revamp North Stand

Club to reuse existing structure rather than complete rebuild
4 days ago

Mace signs ex-ISG director to lead Euro health and tech push

Gary Sweeney to head up healthcare and life sciences consultancy arm
4 days ago

Sir Robert McAlpine claws way back into profit

Firm says return to profit and strong cash balance validates new strategy
5 days ago

Severfield to cut staff by 6% amid pricing pressure

Steelwork contractor warns of extended tighter pricing due to project delays
5 days ago

JRL completes sale of 50% stake to Malaysian giant IJM

Deal boosts balance sheet and kicks starts growth plan
5 days ago

Green light for £100m Liverpool Baltic station build

Enabling highway works to start in the autumn
5 days ago

First live tests for flying construction robots

Drones can lay construction materials at height on site
5 days ago

Three firms land £170m Gentoo Sunderland housing deal

PHS Solutions, Esh and RE:GEN to deliver 10-year home upgrade plan
5 days ago

Gateway gridlock hits build-to-rent delivery as starts nosedive

Build to rent starts plunge 18% in the capital
6 days ago

Call to shift Gateway 2 checks to end building bottleneck

"The current system isn't working but we all want to see safe buildings"
6 days ago

GBN launches £600m bid race for SMR engineer roles

Owner engineers to provide technical and assurance services
6 days ago

Wates hires ex-Homes England chief to head public sector push

Robert Stone to spearhead its public sector and national frameworks strategy
6 days ago

Acheson Construction collapse costs suppliers £8.5m

One frustrated creditor seized a telehandler after contractor went into administration
6 days ago

Dominus wins go-ahead for 173-bed Glasgow scheme

Old Wynd Street job expected to cost around £25m to build
6 days ago

Safety Regulator misses deadline to clear Gateway 2 backlog

Investors pulling out of funding high rise buildings
7 days ago

CITB still sitting on £95m cash pile

Staff numbers jump from 666 to 763 as training body wage bill soars
7 days ago

£500m road surfacing framework market call

NEPO goes out to consultation on north east regional highways deal
7 days ago

Contractor services