Chris Ratten and Lindsey Cooper of RSM UK Restructuring Advisory LLP were appointed as joint administrators of Create Construction Limited on 27th October 2021.
Other companies within the Create Group are unaffected.
Create Construction had around 50 employees, the majority of whom work on construction sites across the UK. Most have been made redundant, although a few have been retained temporarily to assist the administrators.
Create Construction was incorporated in 2006 by Paul and Gillian Mathison. In the year to February 2020 it made a pre-tax profit of 拢483,000 on turnover of 拢93m (up from 拢66m the previous year). It had carved itself a market in building hotels and purpose-built student accommodation.
It had started construction work on a 拢7m extension of the Hampton By Hilton Hotel on Blackpool鈥檚 South Shore in July, on a 53-week build programme. It was also expecting to start construction of another Hampton by Hilton hotel in Stockport next spring.
A company statement said: 鈥淭he pandemic has affected every area of our business, from delays in pipeline projects achieving planning approval and concluding funding, to access being restricted or denied into completed operational student accommodation buildings to allow us to complete 12 months defects works and to release significant retention monies owed to our supply chain.鈥�
Chief executive Paul Mathison said: 鈥淭he pandemic has severely affected both our clients and our supply chain鈥檚 ability to meet their contractual arrangements. An overrun in projects in both time and budget, a number of supply chain failures and delays to a secured pipeline of projects, has ultimately made the company unviable.鈥�
Chris Ratten, partner at RSM UK Restructuring Advisory and one of the joint administrators, said: 鈥淲e are now working closely with the company鈥檚 customers and subcontractors to ensure current projects are reassigned. It is hoped many of Create Construction鈥檚 on-site roles will transfer to other companies to ensure the continuation of ongoing construction projects.鈥�
Create Construction鈥檚 website at time of failure said that the company had eight live major projects around the UK:
- Trafford - Hampton By Hilton
- Blackpool - Hampton By Hilton Extension
- Coventry - Harper Road
- Swansea - Morfa Road
- Liverpool - Bowline
- Salford - Discovery Quay Phase 2
- Edinburgh - Ibis Edinburgh Airport
- Leicester - Rutland Street
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