74 jobs axed as Elliott Thomas falls into administration

Aaron Morby 3 years ago

Parts of construction logistics and building business Elliott Thomas have fallen into administration after a payment row on a single project tipped the firm over the brink.

The Prime Construction division of Elliott Thomas was involved in a payment dispute at the Bear Gardens hotel job
The Prime Construction division of Elliott Thomas was involved in a payment dispute at the Bear Gardens hotel job

Around 74 staff have been laid off by administrators from London insolvency specialist Carter Backer Winter, although when self employed workers are included around 300 are affected.

The £54m turnover group’s key divisions Elliott Thomas Logistics and builder Prime Construction are now in administration.

But group director John Self and a co-investor Lyndon Scaffolding managed to save around 47 jobs in an eleventh hour deal to buy the Taylor Hoists name and Rainsford Contracts joinery business.

A spokesman for CBW said: “It’s unfortunate that a settlement couldn’t be reached on one of the group’s major contracts, which contributed significantly to the administration of certain Elliott Thomas Group companies.  

“It hasn’t been possible to secure a sale of the business of these entities, which provided construction and logistics services, and accordingly 74 redundancies were made shortly following our appointment.

 “We are however pleased to confirm that it has been possible to secure a sale of the hoists division of Elliot Thomas Limited to a new company set up by one of the former directors and a co-investor. 

“This should preserve around 25 jobs and enable a return to be made to creditors.  In addition, Rainsford Contracts  has been sold on a solvent basis as a share sale by ETG in administration, which should secure a further 22 jobs and keep its creditor base intact.”

Problems at the Prime Construction business, which was established back in 2012, dragged the whole group into administration.

The building firm became involved in a payment dispute with its client at the £11.9m Bear Gardens project in London’s Bankside.

The 75-bed apart-hotel scheme was 37-weeks late which led to claims of around £2.5m.

The dispute went to adjudication but bankers for Elliott Thomas pulled the firm’s overdraft facility while discussions were still ongoing.

The client on the Bear Gardens job was a Guernsey-based property developer Livingston Trust and RISE was the project manager.

Latest news

Staff sent home at Harry Fairclough Construction

Warrington contractor goes under after 120 years in business
6 mins ago

Construction work stops on another Elliot Group tower

Work suspended on £70m The Residence in Salford
22 hours ago

London super sewer passes halfway point

Two further TBMs to be launched this year for east part of 25km drive
10 hours ago

Entire facade of wind damaged tower to be strengthened

Major remedial programme planned after three cladding panels blown-off
3 hours ago

Costain Welsh road job £100m over budget and two years late

Row simmers with Welsh Government about liabilities for cost overruns
23 hours ago

BAM trading steady after second half uplift

Rise in profit at BAM Construction offsets fall at BAM Nuttall civils arm
2 hours ago

Plan in for £30m East London ice rink

Twin pad ice skating centre will be biggest in southern England
12 hours ago

Winvic starts £43m Milton Keynes rental flats tower

Aubrey Place will rise to 18 storeys around a H-shaped footprint
21 hours ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

One million homes with planning permission not built

Council chiefs claim figures show 'the planning system is not a barrier to house building"
23 hours ago

Morgan Sindall profit jumps as revenue tops £3bn

Construction margin edges up to 2.2% in bumper year
1 day ago

Laing O’Rourke nets £500m Everton stadium

Work to start later this year on Bramley-Moore Dock stadium
2 days ago

Scotland’s Whyte Crane Hire collapses

11 jobs axed as family-owned mobile crane specialist calls in administrators
1 day ago

Plans go in for HS2 Old Oak Station

Start of construction at HS2’s London super-hub moves a step closer
2 days ago

Opinion: New immigration rules are unworkable on site

Points based system will create severe shortages and is dismissive of construction trades
2 days ago

New minister for HS2 named

Lancashire MP Andrew Stephenson to oversee HS2 and Northern Powerhouse Rail
2 days ago

Plans unveiled for new £150m film studio in Reading

US giant Blackhall Studios keen to invest in the UK
2 days ago

Government cuts flow of EU construction workers

New points based immigration system means end to free movement of labour to sites
2 days ago

Facade panels blown off 33-storey Manchester tower

Caddick Construction and cladding contractor carrying out checks on building
2 days ago

New Museum of London enabling works to cost £40m

Bidders day planned for complex enabling and structural work package
2 days ago

Summer start for 350-flat Nottingham scheme

9-storey block to be built next to Nottingham station
3 days ago

Millwall FC reveal new stadium plan

Plan for phased expansion of the Den with upper stand tiers
2 days ago

Vistry deal to build 1,400 housing association homes

Aster and Vistry will invest £167m in five new sites
2 days ago

Fusion21 names decarbonising framework winners

Sixty eight firms secure places on £250m energy efficiency framework
3 days ago

Speller Metcalfe wins £14m Devon leisure centre deal

New Tarka Leisure Centre to offer ‘endless ski slope’
3 days ago

Bardsley crashed owing £45m to trade creditors

Manchester builder hit by toxic mix of contractual disputes and project delays
3 days ago

Bardsley hit sends Anders Glass under

Manchester glass merchant and glazing contractor crashes
3 days ago

Green light for UK’s first ‘super slender’ resi tower

Broad Street tower in Birmingham will be less than 10m wide but rise to 37 storeys
4 days ago

Higgins bags £44m job at Shredded Wheat Factory site

Over 200 homes planned for Welwyn Garden City site
4 days ago

Jackson in line for £22m road upgrade

Construction to start this spring after funding agreed for A2300 improvements
3 days ago

Contractor services