HULL-BASED construction company Rapide Dry Lining has been placed in administration after its cash flow became unmanageable.
FRP Advisory administrators Geoff Rowley and Steven Stokes were made joint administrators on 29 June after financial difficulties at Rapide culminated in a number of creditors taking recovery actions and eventually filing a winding-up petition against the company.
The company directly employed five members of staff, as well as about 50 sub-contractors, and worked on contracts to install ceilings, internal walls and flooring in commercial properties.
Steven Stokes, director at FRP, said: “Historically unprofitable contracts and delays in payments from current contractors had severely affected Rapide’s cash flow.
“Management had begun attempts to downsize and restructure the business. However, due to a lack of cash and increased creditor pressure, the firm was unable to continue trading. Sadly, all of Rapide Dry Lining Limited’s employees will be made redundant.”
The administrators are continuing attempts to re-negotiate ongoing contracts to alternative sub-contractors in an attempt to support the debtors’ ledger, thereby recovering as much value as possible for the company’s creditors.
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