Askam Construction went into administration on Tuesday, following a troubled two years of losing contracts and increasing pressure on cashflow.
In a pre-pack deal, joint administrators, Sam Woodward and Tom Jack, of Ernst & Young sold a number of ongoing contracts from Askam Construction Ltd over to Askam Civil Engineering Ltd, rescuing 45 jobs. However, they had to also make 43 redundancies due to its closure in the construction division.
Woodward commented, “We are pleased to have completed a sale which has secured the ongoing employment of 45 people, and we will now focus on realising the company’s remaining assets to secure the best possible return for creditors.”
Only in 2012, the company secured a deal with Coronation Street to build its set in Salford and in the year before, was mentioned in the Telegraph as one of Britain’s brightest businesses.
By seeking help before it was too late, Askam managed to save many jobs and continue trading part of their business.