But administrator says 900 of the 1,449 jobs at Daniel Contractors to be safeguarded

state of play

More than 450 jobs are under review at Daniel Contractors after the £120m-turnover contractor was placed in administration this week.

Administrator Deloitte said yesterday that is had put plans in place to safeguard 900 of the 1,449 jobs at the North-west contractor, but that the remaining 459 staff were “under review”.

Deloitte said it intends to continue trading two of the firm’s three main contracts, while the third major contract has already been transferred to an undisclosed third party.

Deloitte said these arrangements should safeguard 990 jobs and ensure these contracts continue with “minimal interruption”.

Daniel subsidiary Land and Marine - which employs 284 of the 1,449 staff - has also been placed into administration.

Deloitte said it had received several expressions of interest for the subsidiary and is reviewing the options.

Warrington-based Daniel specialises in water and utilities contracts and reported revenue of £117.4m in 2011 and pre-tax profit of £1.3m.

It was founded in 1994 by brothers George and Conal Daniel.

The news came as it emerged creditors owed over £1m by Daniel applied to the courts last month to have the firm wound up.

A winding up petition from around ten unpaid creditors, led by Manchester-based builder T&K Gallagher, was presented to Daniel on their behalf by solicitors Jeffrey Green Russell on 29 April.

Jeffrey Green Russell mediator Nigel Frost told Building these creditors may contest the administration and pursue their winding up action if the administration is not in their interests. A court hearing is scheduled for London’s Companies Court on 17 June.

Frost said the creditors involved in the winding up action are owed over £1m and also include builder Flynn Group, scaffolders Generation UK and traffic lights supplier Amberon.

Frost said some of the creditors he’s representing have outstanding bills up to four months overdue.

A further winding up petition was presented to Daniel by solicitors DTM Legal on behalf of creditor A Hand Services, also on 29 April, with a court hearing also scheduled for 17 June.

Deloitte partners Bill Dawson and Dan Butters are managing the administration.

Bill Dawson, joint administrator and partner in Deloitte’s Restructuring Services team, comments: “We are in discussions with the key stakeholders and interested parties of the group in an attempt to sell all or parts of the businesses and we will be briefing the employees about the situation.”

DTM Legal has been contacted for comment.