105 jobs axed as East Midlands builder goes under

Aaron Morby 12 years ago
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Family-run Leicester builder Hallam Contracts has gone into administration with the loss of 105 jobs.

Hallam was established 90 years ago, making it one of the oldest builders in the East Midlands.

It boasted a directly employed workforce and earned recognition as a leading trainer in the region.

Reports estimated that the firm owes £4m to around 300 subcontractors and suppliers.

Hallam was working on up to 15 large projects, including a £12m contract for student accommodation for developer Victoria Hall at Godiva Place in Coventry.

The firm is also building a £3m health centre for client Assura Medical in Leicester and just started work on a 42-home job in Coventry for Cassidy Group.

Family directors called in administrators Begbies Traynor after facing a winding up petition from a subcontractor, reported to be owed £500,000.

The firm picked up several awards earlier this year for its St Martins House Development in Leicester, which achieved recognition for safety and excellence as a quality refurbishment project.

The owner of a south Leicestershire company, which is owed about £50,000 by Hallam, said he was unable to pay some of his workers.

The owner, who did not want to be named, told the Leicester Mercury: “We have got six subcontractors who have not been paid and might not be for some time.

“A five-figure sum is very significant for a company like us.”

Carl Nicol, managing director of Westcotes Flooring Company, of Broughton Astley, said the company was owed about £24,000 by Hallam for a contract completed in September.

He told the Mercury: “We can recover from this, but when they placed the order they would have known they were on rocky ground.”

Administrator John Lowe said: “Poor margins, disputed accounts and bad debts have all contributed to the failure of this well-known Leicestershire business.

“The directors very much regret the action they have had to take but following a petition presented against the company, felt they had no other options.”

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