M&E firm safe after cancelled £4m contract jeopardises stability
Struggling Hampshire building services firm RF Webb has been saved after creditors backed a turnaround plan.
The 76-year-old Eastleigh firm, which is part of the Lowe Holdings Group, was plunged into difficulty after the termination of a £4m contract at Portsmouth’s Queen Alexandria Hospital.
Steve Lee, managing director of RF Webb, said: “We decided to go for a company voluntary arrangement before that contract was cancelled, but only because we were squeezed so hard on cashflow on that same contract.
“Before they terminated it, we were prepared to ride the storm and then pay off our creditors, subject to finishing that job.”
RF Webb has already been forced to lay off 17 of its 53 workers, and was facing administration or liquidation.
However, its creditors have now voted in favour of RF Webb’s appeal not to put it out of business.
Steve Lee said: “We’re a long-established group and we hope our creditors can see what the situation was with that particular contract and will put their trust in us to get out of it.”
Electrical and Mechanical Contractor