Danish contractor cites “far too aggressive” growth plan as main cause of financial problems
Danish contractor Pihl has filed for bankruptcy after a “far too aggressive” expansion programme went wrong.
In a statement the £730m-turnover company said new management had discovered financial problems were worse than originally thought and that it “would not be possible to find a solution that could secure the continued operation of the company”.
Pihl, which made a loss of £27m in 2012, hit the headlines in the UK this month after a judge ordered it to pay its share of £205,000 damages awarded against its joint venture consortium with Galliford Try over problems on the £72m Museum of Liverpool building.
Pihl’s statement said it had also mistakenly recognised claims against third parties as income and incurred further unexpected costs.