Shaylor Group, the Birmingham-based building contractor, has laid off 250 staff over the weekend and is set to go into administration today. The firm has been involved in many of the larger projects around the Birmingham area such as Rolls Royce building, the Ricoh Arena and Birmingham Airport.
In an email sent to staff yesterday morning, Shaylor Group said it was set to collapse by “a number of project delays, payment disputes with clients and the failure of several key subcontractors” which it said had had a “severe impact on the group’s cashflow in recent weeks”.
It is understood that the company was unable to raise further finance to continue trading. Shaylor Holdings was quite a substantial business with a turnover of £153m to the year to 30th September 2018. The same accounts, filed in April 2019, also revealed that its pre-tax profits halved from £4.8m to £2.4m over the same period.
The company had filed an intention to appoint administrators back on the 6th of June in the hope of raising finance. The firm had grown quickly in the last few years and this might have made refinancing difficult unless its growth could be sustained.