The £24m turnover family-owned firm ran into problems working on Galliford Try’s Carlisle Southern Link Road project and exited the job late last year.
To help steer the business forward in the wake of the challenging project, Cubby directors turned to private investor Svella, run by former Stobart Group director Andrew Tinkler.
Svella stepped in with funding support earlier this year, taking a charge over certain assets.
Last week Svella was named as the applicant behind a notice of intention to appoint an administrator for the Cubby business.
In a statement, Cubby said: “Cubby is working closely with accountants FRP and the secured creditor, and we are confident that a resolution can be agreed that is in the interests of the business and all its creditors and does not require administrators to be appointed over the company.”
A spokesman for Svella said: “Svella Plc is a debt provider to Cubby Construction Limited and is taking the necessary steps to protect its own interests and those of its stakeholders.
“Engagement with Cubby Construction is ongoing to help find a solvent solution. In the meantime, Svella is committed to exploring whether it can provide investment if restructuring becomes necessary.”
Svella first entered the construction sector back in 2021 after it opened talks with Midlands civils contractor Nmcn over a £24m recapitalisation package.
The planned refinancing deal fell through at the eleventh hour when overdue accounts finally published by Nmcn revealed further contractual issues and higher than expected losses of £43m.
Nmcn then fell into administration with Svella acquiring from administrators the telecoms, plant hire, transport and accommodation business divisions of Nmcn, which it runs today.
Cubby has been in business since 1968 and employs around 150 staff working across Northern England and Southern Scotland.
The firm runs a fleet of plant and carries out drainage, bridgeworks, earthworks, roads and footpaths, utilities works, specialist concrete works.
Cubby also operates an in-house joinery division offering bespoke kitchens, doors, windows, stairs and furniture.
