Nick Hood, a partner with Begbies Traynor, blamed a ‘ferocious price war’ for the collapse of Romford-based Loweth and said it was only the ‘latest victim’ of dwindling profit margins.
Hood said he was dealing with a number of parties interested in the 122-year-old firm, but added that transfer of undertakings (TUPE) regulations were a major stumbling block to finding a buyer.
He said: ‘Unfortunately, there are very few companies willing to take on the employment liabilities of such a large number of people, when margins are so slim and the commercial risks are so high.’
Hood and joint administrator Paul Davis will attempt to save the business and hope to maximize the return for creditors. But they said that almost all of Loweth’s 200 employees would lose their jobs.
The firm, which has a turnover of £20m, specialises in refurbishment and maintenance work with clients including the Crown Estate, major high street banks and a number of pub chains.
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Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children