Greater-Manchester based FK Construction has entered administration, appointing joint administrators David Hopkins and Paul Stanley of BTG, formerly Begbies Traynor Group.
In its latest published results for the year to the end of March 2024, the firm reported a pre-tax loss of around £7.5m, compared to a £62,290 profit in the previous year.
Hopkins said: “This is a significant restructuring of the group’s assets and operations. The directors of the group explored a number of avenues prior to this decision and established that this was the best route forward for all stakeholders, creditors and the future of the group. As part of this restructuring process we will be focused on delivering the best outcome for all creditors. This will include realising the group’s assets for the benefit of creditors.
“The leadership of the group were focussed on delivering the best possible outcome for all creditors, and the jobs of a number of employees, together with certain contracts they were working on, have been able to continue under a new name. We hope that the skilled employees that were made redundant before our appointment are able to find new roles soon, as their talents are much needed as the industry seeks to fulfil building targets and housing demands.”
The collapse of FK Construction comes during a turbulent period for smaller construction firms and housing developers, with a string of administration this year.
SME property developer and manager Calmont Homes entered administration earlier this month. The developer is part of Calmont Group, which has also appointed joint administrators – Shaun Hudson and Allan Kelly from FRP Advisory Trading. Formed in 1995, Calmont Group builds properties across a range of sectors including residential, commercial and leisure.
Last month, Caldwell Construction, based in Stoke-on-Trent and Warrington, also collapsed into administration after 20 years of trading. The firm employed over 400 people and specialised in groundwork services for national housebuilders.
FK Construction has been contacted for comment.
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