As well-known construction company Pochin has gone into administration - we saw the immediate fall out and the wide-spread damaging effects.
Eight divisions of the group have now been placed into administration. The Cheshire-based firm was founded in the 1930s and was a familiar name on sites across the North-West.
Last year Pochin’s construction arm lost £6.2m on £50m revenue after being hit by a single loss-making contract in Manchester, and the difficulties of dealing with the legacy issues on this contract proved to be insurmountable.
Stunned subcontractors were turned away from sites when they turned up to work the Monday after the administrators moved in. A number of these firms have been in contact with the team at BCR and, of course, the fall-out of damage to their own businesses will continue to cause difficulty and distress.
Chris Knott, Director at BCR said:
‘It is a common occurrence to see suppliers and subcontractors needing help and advice when a large business fails. If I were to give three key pieces of advice to companies in this situation, they would be as follows:
- Don’t hide your head in the sand – be realistic about your options and clear about your liabilities
- Take early advice and look carefully at your borrowings and the terms and conditions of any finance agreements
- A clear decision at an early stage on the future of your business will help you to take pro-active steps and to get the best outcome.’
If you are affected by the failure (or potential failure) of your business, then give us a call. We are always at the end of the phone to give you clear, straightforward and objective advice.
