Three LSC Group firms placed in administration, but some assets have been sold on
The bulk of cladding firm LSC Group has entered administration with the loss of 156-plus jobs.
Administrator KRE Corporate Recovery, which was appointed last month, told Building the group’s three main firms were placed in administration - LSC Facades, LSC Special Works and Arcadia Facades. The group and other related companies are understood to still be operating.
KRE said they had managed to sell the assets of Arcadia Facades to three parties, including two of its existing directors, while they believe the assets of LSC Special Works could be sold in the near future.
The trio of firms that were placed in administration could owe upwards of £2m, KRE said.
Rob Keyes, administrator for LSC Facades, LSC Special Works and Arcadia Facades, said the companies’ collapse was caused by “an accumulation of cash flow pressure after a drop in margin, in terms of the expected recovery they were looking at, and they got themselves into a position where they were heavily reliant on an overdraft facility without being able to support that facility.”