London-based refurb and building specialist ME Construction and its civils arm MEC groundwork have been placed into administration.
The firm was founded in 2007 by two ex-employees of Bovis Lend Lease – Barry O’Sullivan and Dennis Bernard who left the business three years ago.
MEC specialised in small to medium projects within the M25 across heritage, residential, commercial, healthcare and schools sectors with revenue peaking at around £23m before Covid.
While the business had a strong pipeline of projects, trading was impacted by ongoing inflationary pressures on margins.
Day to day running of the MEC business was also impacted by an extended leave of absence for its managing director Sean O’Connor, who is currently addressing serious personal health matters.
Directors attempted to sell the business but without any viable offers, MEC was placed into administration.
Upon appointment, all 23 roles were made redundant, and the business ceased to trade.
Administrator FRP will now progress with a formal wind down.
FRP were also appointed as joint liquidators to MEC Groundworks at the end of March.
MEC Groundworks delivered groundworks services on behalf of the group and has ceased trading. All 12 roles have been made redundant.
Nathan Jones, joint administrator, said: “ME Construction was trading well and had an encouraging pipeline.
“But challenging circumstances for the leadership team meant that urgent investment was needed.
“Without any viable transaction to secure the future of the business, trading has stopped, and we are moving towards a wind down of its operations.”