Midlands-based SCC enters into administration and partly blames cashflow problems caused by GB Building Solutions administration
Administrators have been appointed at design build contractor SCC due to cashflow problems partly attributed to the insolvency in March of its customer GB Building Solutions.
KPMG has been appointed administrator of the 149-strong business and said in a statement it will attempt to preserve the business and its asset values for investors.
SCC, which also manufactures pre-fabricated concrete structures, perates a production facility from its head office in Reddish, Stockport supported by a small team based in a leasehold premises in Sheffield.
Dumbell said: “While the company had been experiencing difficult trading conditions in recent months, the insolvency earlier this month of one of SCC’s key customers, GB Building Solutions Limited, had left a significant hole in the company’s cash flow, such that there was little option but to appoint administrators.”
“Over the coming days, we will be working closely with the management team and with suppliers and customers to explore all options for the business.
GB Group Holdings and GB Building Solutions went into administration in March, causing the loss of 350 jobs.
The businesses, which operated across the care, student accommodation, residential, education and commercial sectors, had experienced a “serious deterioration” in its working capital position.