YPP Groundworks & Civils Ltd went into administration earlier this month and has been acquired by Yorkshire Pro Paving Limited.
Both companies have the same directors – Tom and Kylie Armitage.
YPP had a turnover of £5.7m in the year to March 2022 but suffered losses “due to a large contract being impacted by the pandemic alongside rising material prices.”
The firm was placed in the hands of joint administrator Steven Wiseglass of Inquesta Corporate Recovery & Insolvency, and Joanne Hammond of Begbies Traynor.
Wiseglass said: “Following our appointment, a number of expressions of interest were made to acquire the business, but only one acceptable offer was received.
“The company has a proven track record across the Yorkshire region and a skilled workforce. The sale represents a better outcome than the alternative of placing the business in liquidation, as it safeguards the jobs of its employees and its existing contracts.”
He confirmed that trade creditors were owed £745,000 at the time of the firm’s failure and added: “There is a possibility of a return to creditors but we cannot provide a figure at this stage.”