An administrator will be appointed within days at ERH Construction and E R Hemmings Building which closed last week.
ERH (Holdings) and its subsidiary ERH Communications are continuing to trade as normal.
The closure of the Construction and Building divisions has resulted in 37 job losses but 25 of those have been offered new roles at the Communications operation
ERH Construction stopped work on more than £2m of road repair jobs in Bath last week.
The Enquirer understands that the schemes will be novated over to ERH Communications who will complete the work for Bath and North East Somerest Council.
The company said: “The directors of E R H (Holdings) Limited and its subsidiary ERH Communications Limited wish to assure customers, suppliers and employees that it is business as usual and these companies are unaffected by last week’s events affecting two other subsidiaries, E.R.Hemmings (Building) Limited and ERH Construction.
“The Group is implementing a financial restructuring which has strengthened the long term viability of Communications and Holdings.
“Unfortunately, the financial restructuring has resulted in the closure, last week, of Building and Construction.
“Building and Construction ceased trading last week with the unfortunate loss of 37 jobs. However, following further discussions, approximately 25 of these affected will be offered jobs by Communications.”
Accountants Grant Thornton are currently advising the group on its restructuring.
ERH added: “In the very difficult trading conditions of the past few years, Building and Construction has incurred significant trading losses.
“The directors have filed notice of intentions to appoint administrators for Building and Construction, and it is likely Administrators will be appointed by 31 October 2014.
“At that time the administrators will formally communicate with all affected parties.”
Group chairman Ernie Hemmings said: “Having traded for 44 years, it is devastating to find what has occurred in the group over the last two years, however I am immensely grateful for the support of our customers, creditors, workforce and dedicated team of senior managers working with Grant Thornton to secure a profitable viable business going forward.
“The support we have received is appreciated and very humbling.”
The group’s last filed accounts at Companies House for the year to December 31 2012 show it made a pre-tax profit of £1m on a turnover of £42m.
