Simpson & Gregg goes into administration

Newcastle-based plumbing and electrical contractor Simpson & Gregg has gone into administration, with the loss of 92 jobs.

Administrators from Grant Thornton hold out little hope of finding a buyer for the 61-year-old business.

Insolvency practitioner Joseph McLean told nebusiness.co.uk: 'It's unlikely we will be able to sell the business. The company had run into cashflow difficulties and it had been unable to purchase materials to complete some of its contracts.'

Simpson & Gregg operated primarily in the new-build housing market. Last May, the business owners, mother and son Mary and Peter Gregg, sold the firm for a seven-figure sum to an investment team headed by Simpson & Gregg managing director Colin Read. At the time of the sale it employed 120 staff.

The bulk of its work was in short- and medium-term contracts and as it became apparent it was having difficultes, some of these contracts were terminated.