The development division of a Liverpool-based construction group has collapsed, owing creditors more than £3.5m – just weeks after its sister company fell into administration.
Jason Greenhalgh and Paul Stanley Begbies Traynor have been appointed as joint liquidators of Crossfield Living Limited, which has entered into voluntary liquidation and is understood to owe suppliers about £3.6m.
Crossfield Living ceased to trade on 29 April, after it faced significant financial pressure.
The contractor blamed COVID-19 restrictions, the soaring price of raw materials and the loss of key contracts as key factors behind its demise.
The liquidation comes as Crossfield Construction went bust in April, owing creditors £5.9m.
David Cain, director of both companies, had previously described trading over the past few years as “hell”.
A statement of affairs for Crossfield Construction showed that it owed £1.1m to NatWest bank from a COVID support loan and £920,000 to parent company Crossfield Group Ltd. Crossfield Construction also owed £910,000 to the recently liquidated Crossfield Living Ltd.
Jason Greenhalgh, partner at Begbies Traynor in Liverpool, said: “Today, we can confirm our appointment as joint liquidators of Crossfield Living Limited. We are contacting all known creditors to outline what this means, what the next steps are, and we will be fulfilling our statutory duties over the coming days, weeks and months.
“The company has faced financial challenges in recent times, with rising costs, loss of contracts and COVID restrictions being some of the reasons.”
Crossfield Construction worked on new-build and refurbishment work, primarily in the North West of England, in sectors covering education, health, commercial, industrial and retail.
According to local paper Liverpool Echo, the construction arm saw a £2.2m deal with Sefton Council fall through in November last year. The council blamed delays and a lack of progress on the part of the contractor for cancelling the deal to redevelop an adventure centre in Crosby.
Salford City Council also replaced Crossfield with Seddon on a £36m housing build in Hulton.
Construction News revealed earlier this month that 15 construction-related companies went into administration in June.