SCC Ltd manages a design build and manufacturing site in Stockport as well as small premises in Sheffield, employing 149 staff.
Joint administrators, Paul Dumbell and Brian Green from KPMG, are overseeing the process and will consider all options for the business going forward. Most staff have been sent home during this time.
Dumbell said, “While the company had been experiencing difficult trading conditions in recent months, the insolvency earlier this month of one of SCC’s key customers, GB Building Solutions Ltd, had left a significant hole in the company’s cash flow, such that there was little option but to appoint administrators.”
“Over the coming days, we will be working closely with the management team and with suppliers and customers to explore all options for the business.”
The company’s customer, GB Building Solutions, entered administration on 9th March due to poor cash flow and “short-term working capital issues”. Various big projects run by the company had to be stopped, including a London student development, a Hilton hotel, Greenwich Peninsula plots and a Sunderland Premier Inn.
Often when a large company goes into administration, there is usually a ‘domino effect’ as the loss of business causes customers and connected suppliers to struggle financially. It is important for companies to work with various suppliers and businesses, if possible, to ensure the company is protected in the event of a supplier becoming insolvent.