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

Domis to start this year on £350m Nobu towers

Developer Salboy gains planning for Viadux second phase in Manchester
22 hours ago

Muse submits Oldham town centre regeneration plan

Plan advances for six sites to deliver 2000 homes, an hotel and office space
22 hours ago

Construction returns to growth after two tough months

Concern grows Trump turmoil is spooking property investors
21 hours ago

Skanska wins £43m Clifton Bridge deal

Contractors says scheme is a "complex project that will be delivered to tight timescales"
22 hours ago

Green light for 44-storey Manchester resi tower

Developer Glenbrook to start hunt for main contractor
2 days ago

Ten win £670m Network Rail eastern region small works deal

CK Rail, QTS, Colt and Construction Marine pick up two lots
2 days ago

Mears aims to dominate in compliance and housing upkeep

Firm hails 100% rebid success on a slew of major contract renewals
2 days ago

Investigation after two track workers hit by wagon

Accident in Glasgow during engineering possession
22 hours ago

Durkan finance chief joins house builder Thakeham

Paul Kimber confirmed as new Chief Financial Officer
22 hours ago

Water win sees Mott MacDonald Bentley hunt for new staff

Recruitment event for the South of England: Register now
2 days ago

Labour master VAT fraudsters target subcontractors

Tax authorities looking to clamp down on payroll fraud
2 days ago

Phoenix ME rides out ISG collapse with record 74% turnover surge

Pre-tax profit up after Phoenix re-engaged on all former ISG jobs
2 days ago

Mace confirmed for £200m London City office retrofit

Four upper floors to be added to 65 Gresham Street
2 days ago

£200m Viking onshore pipeline project approved

55km underground pipeline to be built from Immingham to Theddlethorpe
2 days ago

Plans in for Bristol Brabazon over-station office block

YTL Construction UK to build 8-storey office block
2 days ago

UK Power Networks fined for unsafe street works

Council officers spot unguarded excavations
2 days ago

Lindum profit jumps 28% as turnover nears £200m

507 staff shareholders share in strong year as pre-tax profit hits £10.4m
3 days ago

Universal to build theme park in Bedford

Work to start next year creating 20,000 construction jobs
3 days ago

Go-ahead for £400m Cambridge sewage treatment works

Major greenbelt project pivotal to 8,000-home North East Cambridge scheme
3 days ago

Erith pays down bid-rigging fine over two years early

Total employee ownership bonuses top £5.3m for nearly 450 staff
3 days ago

Network Rail property JV to deliver Cambridge North homes

Blockwork will deliver over 400 homes around local station
3 days ago

Construction worker dies on Essex site

Fatal accident at housing job run by Rose Builders
4 days ago

Pension fund charges hit profits at Wates

Bottom line also hit by closing out construction contracts
4 days ago

Muse submits £35m St Helens transport hub plan

Vinci lined up for project forming part of £100m town centre regeneration
3 days ago

Firms called for input on £108m Selsey coastal defence scheme

10-year construction plan to combat failing sea walls and eroding beaches
3 days ago

Renamed Bovis Construction suffered £16m loss last year

Firm slumped into red before being sold to US group Atlas Holdings
4 days ago

Plans in for £1bn Liverpool Street Station scheme

21-storey offices above station main concourse to help fund upgrade
4 days ago

Project director leaves giant McAlpine car battery site

Change in site team at flagship £4bn Agratas factory
4 days ago

Nexus Infrastructure orders up 11% at half-year

Tamdown housing civils arm orders up despite housing recovery delay
4 days ago

Five firms win £450m Scottish electricity network upgrade

Major investment by Energy company SSEN Distribution
5 days ago

Contractor services