George Birchall Service collapses
Posted by: electime 1st April 2019
It has been confirmed today that building services maintenance contractor George Birchall Service has been placed into administration.
Hundreds of workers at the firm were sent home without pay last Thursday, the day before they were due to receive their wages.
The company employed over 400 employees, the majority of which are now being made redundant.
Steven Stokes and Raj Mittal, partners at FRP Advisory, have been appointed as administrators.
Stokes said: “George Birchall Service had suffered severe cashflow pressures in recent months, which forced the business into administration. Every attempt had been made by the directors to secure a more positive outcome for all concerned, however, when it came apparent in recent days that a sale of the business could not be achieved, the extremely difficult decision was made to place the company into administration.
“Our immediate priority is now to support affected employees and work closely with clients to ensure the smooth transition of contracts. We are hopeful that this will include the further transfer of a significant proportion of the workforce to alternative contractors.”
The news come just 6 months after the company’s mechanical and electrical contracting division – George Birchall Ltd collapsed due to poor trading conditions and the cancellation of a number of large orders, leaving 141 people out of a job.
