Blackpool-based Create Construction has fallen into administration, with the majority of its 50 staff made redundant.
The contractor, which operates nationally, reported a turnover of nearly £93m in the year to 29 February 2020, up from £65m the year before. It made a pre-tax profit in the year to 29 February 2020 of £536,274.
The business operates mainly in the hotel, student and build-to-rent accommodation sectors but hit difficulties as a result of the coronavirus pandemic.
The other companies within the Create Group are unaffected.
Chris Ratten partner at RSM UK Restructuring Advisory and one of the joint administrators said: “Create Construction Limited has recently encountered a number of issues that have led to significant cash flow pressures. The business has been adversely impacted by increasing costs of building supplies and subcontract labour.
“We are now working closely with the company’s customers and subcontractors to ensure current projects are reassigned. It is hoped many of Create Construction’s on-site roles will transfer to other companies to ensure the continuation of ongoing construction projects.’
Paul Mathison, CEO, Create Construction, added: “The pandemic has severely affected both our clients and our supply chain’s ability to meet their contractual arrangements. An overrun in projects in both time and budget, a number of supply chain failures and delays to a secured pipeline of projects, has ultimately made the company unviable.”
