North West-based specialist commercial contractor Clovemead Limited has entered administration this week.
The company, which has had a significant national presence since 1980, employs more than 50 staff including some sub-contractors.
Operating out of premises in Warrington and Widnes, the firm has expertise across construction, minor works, fuel systems and signage.
Clovemead, which provides services to private and public sector as well as blue-chip and high-expectancy clients, had approached advisory and business recovery practice Poppleton & Appleby for assistance in a managed work-out of existing projects whilst seeking potential acquirers of the material parts of the business.
The move, which is said to have come after the company’s “traditional sources of business started to fall into decline”, resulted in a disposal of the company’s fuel systems operations in February, together with existing contracts and personnel.
On Monday (11 March) Poppleton & Appleby partners Allan Cadman and Charles Brook were appointed as joint administrators, and the signage division was sold immediately after the appointment.
Both sales, which involved divisions based in Widnes, are said to have retained 25 of the company’s staff.
The rest of the company remains in administration with 20 jobs affected.
Sub-contract creditors, suppliers, staff and Poppleton & Appleby are said to be continuing to liaise with customers to achieve the best outcome, minimising the financial and social impact of the company’s collapse. Meanwhile Clovemead continues to operate around the UK.
Cadman, based in Poppleton & Appleby’s Manchester office, says: “We are proud to have been selected to assist such a well-regarded company in achieving such a positive outcome. Although unable to preserve all jobs, we are confident that the outcome will assure many long-serving staff of future employment and retain critical skills within the region.
“Clovemead is a good example of the kind of results that can be achieved with early intervention and a willingness to explore commercial prospects in a bespoke manner.”