Soaring materials prices final straw for failed contractor
Rising materials prices and the Covid pandemic have been blamed for the collapse of Wolverhampton based contractor Arthur M. Griffiths & Son Limited.
The firm – which can trace its roots back to 1899 – was placed in the hands of joint administrators Conrad Beighton and David Griffiths of Leonard Curtis Business Rescue & Recovery last Friday.
On appointment, 44 employees were made redundant and Leonard Curtis are now taking steps for an orderly wind-down of the company and to ensure that maximum realisations are achieved for the benefit of creditors.
The administrators said: “The company had encountered continuous, ongoing difficulties within the construction industry, as a result of the ongoing pandemic and issues associated with Brexit.
“Current volatility in availability and prices of construction materials made the completion of existing contracts on site and any new contracts in the near future unprofitable and therefore unviable.
“Ongoing COVID risks have also further complicated matters, and caused delays in completion of projects.”
Latest accounts for the company for the year to March 31 2020 show the firm made a pre-tax profit of £244,000 from a turnover of £30m.
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