Begbies Traynor is now assisting the directors in placing the companies into administration.
The Bridgend based group was one of Wales’ leading construction and development businesses specialising in the social housing sector and had 17 live contracts worth in excess of £100m.
The business was established in 1935 by Jack Jehu and has remained family-run since across three generations, with a fourth generation also becoming part of the workforce.
Delivering fixed-price contracts with single digit margins that were agreed before the pandemic, the group’s cash reserves have been decimated by cost increases in excess of 25%.
The directors of the companies, Marc and Simon Jehu, said: “This is a truly devastating day for the business started by our grandfather over 85 years ago. Every possible option to keep the business alive has been completely exhausted and it with desolate hearts that we find ourselves with no choice but to cease trading.
“We did everything possible to avoid closure, but we were fighting a battle that simply couldn’t be won due to the successive economic shocks of the past couple of years.
“Our thoughts are first and foremost with our devoted colleagues who have lost their jobs, many of whom have given more than 25 years of service. We would like to thank the loyal and steadfast clients and supply chain who supported us, often carrying the added burden of those who sought to capitalise on our difficulties.
“We understand this is a worrying time for our colleagues, supply chain partners and customers. We are working with Begbies Traynor to get the best outcome from an impossibly difficult situation.”
Latest accounts for the company show a pre-tax loss of £4m from a turnover of £111m for the 18 months to September 2020.
Huw Powell, managing partner at Begbies Traynor in South Wales, said: “Delays in completing projects caused by the pandemic and subsequent cost increases caused a severe cash-flow crisis that it could not recover from, despite support from key stakeholders.
“It is hugely disappointing to see the group cease trading in these circumstances and highly regrettable that efforts to secure its future were unsuccessful, where the current political and economic turmoil counted against them.
“We are aware of the negative impact that this will have on the supply chain and hope that sub contractors will be able to work with the group’s customers to find the best possible solutions to complete existing projects.”
Data and credit checking specialist Red Flag Alert highlighted potential problems at Jehu back in 2020 with an elevated risk warning.
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