Cathco, the construction business based in Leicester, has gone into administration with Begbies Traynor acting as administrators. The cause of their demise appears to have been a sudden drop off in orders. It is not clear who their major clients were but the government is likely to have been one.
Work to build a 50,000 sq metre Tesco store and shops on Station Yard in Denbigh was due to begin over the summer.
Denbighshire’s leader Hugh Evans said the council still wants to make the project work, adding: “We are committed to supporting this development in Denbigh and are prepared to hold discussions with anyone who wants to push it forward.”
As well as Station Yard, Cathco is responsible for the new Menai Shopping Centre in Bangor which houses several large chain stores such as Debenhams, Body Shop, and River Island.
So this is another construction company that has gone into administration recently. The knock on effects of construction companies going into administration can be quite serious as many other industries and people benefit from construction activity. The construction industry has always been vulnerable to downturns in economic activity as they often cannot react quickly due to the capital intensive nature of their business.