Administrators have been called to property fit out specialists Styles & Wood after experiencing “significant cashflow issues.”
The Sale-headquartered company, which became part of the Extentia Group in 2018, has ceased trading immediately.
Craig Eastwood, chief executive of Extentia, said: “Extentia’s programme management business Styles & Wood has experienced significant cashflow issues following a handful of large developer-led projects.
“By nature, this type of work is complex with high revenues and low margins; a situation inherited by Extentia Group’s new leadership team who succeeded predecessors at the end of November 2019.
“Unfortunately these cashflow issues have become too significant for Styles & Wood to sustain, and so the difficult but correct and responsible decision has been made to file an intention to appoint administrators and discontinue all programme management activities.
“Our focus now is to work with our stakeholders and advisers to explore options for the Styles & Wood businesses, making it a priority to protect the interests of our colleagues and those employed within connected Styles & Wood divisions.”
The firm was delisted from the Stock Exchange and taken private in March 2018.
It was bought for £42.5m by investment vehicle Central Square Holdings and became a leading division in the rebranded Extentia Group.
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In November, long time bosses Tony Lenehan, chief executive, and Phil Lanigan, chief financial officer, of Styles & Wood and Extentia Group, both left the business.
Extentia is made up of 11 property-related businesses, from design, project management and delivery, to fit-out and facilities management businesses.
These include interior design consultant SpaceInvader; furniture supplier Ralph Capper; and engineering consultant GDM.
Investor BGF put £10m into the business in June last year.
While the end of last year saw Extentia announce it was targeting a £230m turnover, Styles & Wood has had a troubled year on a couple of significant projects.
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Styles & Wood’s £38m deal to fit out the India Building in Liverpool, due to be home to HMRC’s 270,000 sq ft office, was terminated in September after a series of delays related to the discovery of asbestos.
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Caddick was appointed as the replacement contractor.
The collapse makes Styles & Wood third big north west construction firm to appoint administrators in the last three months after Bardsley and Harry Fairclough.