Herbert Baggaley Construction placed in administration just months after a management buyout
Nottinghamshire-based firm Herbert Baggaley Construction has fallen into administration, just months after a management buyout.
The firm reported a pre-tax loss of £876k on turnover of £35m in the year to 31 December 2011.
Administrator KPMG confirmed that Herbert Baggaley Construction Limited and Baggaley Group Limited had been placed in administration on Friday, with 104 jobs now under threat, although no redundancies have been made at this point.
Last September the Mansfield-based firm switched ownership of a substantial shareholding in the company to the directors and employees, a move that saw the Baggaley family move away from the management of the company.
Chris Pole, joint administrator and restructuring director at KPMG, said: “Unfortunately the business has been under financial stress for some time due to a number of loss-making contracts and the continuing difficulties experienced in the construction sector.
“Despite a management buy-out last year and efforts to restructure and refinance, this difficult position has been compounded by ongoing losses and unsustainable cash flow pressure. The directors were left with no option but to seek the appointment of administrators. We will now rapidly be assessing the options for this well known business.”