A significant envelope specialist and two of its subsidiaries have gone into administration, citing “inflationary pressures” and challenges post-Covid.
BTG, previously often called Begbies Traynor Group, introduced on Tuesday that two of its workers have been appointed as directors for holding firm FK Group Ltd plus FK Building Ltd and FK Facades Ltd.
All three corporations had initially filed their discover of intention to nominate directors on 19 January and prolonged the interval on 2 February.
David Hopkins and Paul Stanley of BTG have now been appointed as joint directors.
In an announcement, BTG stated the corporate administrators had made the choice after “experiencing vital inflationary pressures post-Covid, amongst different challenges”.
BTG stated 57 individuals have been made redundant, however an additional 54 workers have been transferred – alongside related contracts – to Keenan Holdings, an aluminium and glazing producer and installer based mostly on the similar deal with as the opposite firms.
BTG companion David Hopkins stated: “It is a vital restructuring of the group’s property and operations.
“The administrators of the group explored quite a lot of avenues previous to this resolution and established that this was the perfect route ahead for all stakeholders, collectors and the way forward for the group.
“As a part of this restructuring course of, we will probably be targeted on delivering the perfect consequence for all collectors. This can embrace realising the group’s property for the advantage of collectors.
“The management of the group had been targeted on delivering the very best consequence for all collectors, and the roles of quite a lot of workers, along with sure contracts they had been engaged on, have been in a position to proceed below a brand new identify.
“We hope that the expert workers that had been made redundant earlier than our appointment are capable of finding new roles quickly, as their skills are a lot wanted because the business seeks to fulfil constructing targets and housing demand.”
FK Group, which has been in enterprise since 1979, ranked fourth within the newest CN Specialists Index of constructing envelope corporations.
Building Information beforehand reported that Cheshire-based FK Group had been affected by business challenges equivalent to constructing security regime delays and an ongoing unspecified authorized subject associated to collapsed tier one contractor ISG.
Its most up-to-date accounts confirmed it suffered a £5.9m pre-tax loss within the yr to 31 March 2024, after turnover dropped by 23 per cent to £100.6m.
In the identical interval, FK Building – its fundamental contracting division – reported a pre-tax lack of £7.5m after its turnover halved and it booked £5.5m of outstanding gadgets associated to the authorized dispute with ISG.
FK Facades, which offers curtain walling and rainscreen options, reported a pre-tax revenue of £1.2m on a turnover of £57.2m in the identical interval.
All three corporations ought to have filed their 2024/25 accounts by 31 December final yr.
