Cashflow problems hit company that's been run by the same family for six generations
Birmingham building contractor William Sapcote & Sons has gone into administration after cashflow problems.
Business advisory firm Smith Cooper has been appointed by Birmingham’s law courts to sell on the business, which is part of Sapcote Holdings, as a going concern.
Chairman Richard Sapcote said that the actions of one client witholding payment was enough to send the 154-year old compay into administration.
Chairman Richard Sapcote said: "Obviously it's a tremendous disappointment because this business has been run by my family for six generations. Although we've still been picking up work and making profits, it's cashflow that's killed us. Just one client withholding payment was enough to tip the balance.
Sapcote said the priority was to sell the business as a going concern to safeguard both the workforce and ongoing customer contracts
Simon Gwinnutt, corporate recovery partner from Smith Cooper, said that it had started negotiating the sale of the business, and was confident of finding a buyer.
He said: "Sixth generation family firms are rare particularly when it comes to surviving the rigours of the construction sector however Sapcote has managed to do so partly due to their enviable reputation for high standards of craftsmanship. It's the highly skilled workforce and the Sapcote team ethic which will stand us in good stead for finding a buyer and negotiations are already well in train."