Chris Pole and Richard Philpott of KPMG were appointed joint administrators to Herbert Baggaley Construction Ltd and Baggaley Group Ltd on 1 February.
Of the 104 people employed from the company’s office in Mansfield, 83 have so far been let go. The remaining employees are supporting the administrators while sale options are explored and existing contracts reviewed.
Chris Pole, joint administrator and restructuring director at KPMG, said: “Unfortunately the business has been under financial stress for some time due to a number of loss-making contracts and the continuing difficulties experienced in the construction sector. Despite a management buy-out last year and efforts to restructure and refinance, this difficult position has been compounded by ongoing losses and unsustainable cash flow pressure. The directors were left with no option but to seek the appointment of administrators. We will now rapidly be assessing the options for this well-known business.”
Baggaley was founded in 1908 and until last year remained family-owned. In 2012 ownership was opened up to all employees, who were invited buy shares. At the same time commercial director Phil Askin took over from Ian Baggaley as managing director.
Got a story? Email news@theconstructionindex.co.uk
