The Somerset firm, which employed more than 100 staff and delivered more than £43m of work since launching in 2019, has ceased trading with immediate effect.
Founder Jake Oaten announced the closure in a statement to staff, suppliers and clients, blaming the depressed housing market, rising costs, late payments and the working capital needed to keep the business trading.
He said the company had explored investment and restructuring options and came close to securing a rescue deal before running out of time.
Oaten said liquidation was now “imminent”, although discussions remain under way to establish whether parts of the business could still be rescued through investment or acquisition.
The contractor specialised in infrastructure and groundworks packages for housing developments across Somerset, Devon, Dorset and Wiltshire, working on schemes ranging from five homes to developments of more than 550 properties.
JAO grew rapidly from a start-up operating from a shed in Wellington to become one of the South West’s larger independent groundworks contractors, working for regional house builders and developers.
Oaten apologised directly to creditors, suppliers and subcontractors affected by the collapse, saying he personally faced losses exceeding £1m while acknowledging the wider impact on businesses throughout the supply chain.
The failure adds to a growing list of residential civils and groundworks specialists hitting financial trouble as subdued house building activity, wafer-thin margins, late payments and rising financing costs squeeze firms.
Recent casualties include:
- Swindon-based Avtar Construction, a groundworks specialist with annual turnover of around £20m.
- Northamptonshire contractor Agetur, turning over £23m collapsed owing trade creditors £2.8m.
- Hampshire-based Mackoy, £23m turnover groundworks contractor later rescued in a pre-pack sale to Geocore Civils.
- Caldwell Construction, the £58m turnover Midlands and North West groundworks specialist.
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