Published: 24th April 2017
Incorporated in 2006, GM Environmental Services Limited specialised in building maintenance, roofing and asbestos removal, and was the main provider of building maintenance services to Nottingham City Council.
The company experienced financial difficulties arising from non-payment of invoices from customers, and several contractual disputes. Prior to contacting Real Business Rescue, the company was facing mounting creditor pressure and was being threatened with winding up petitions from numerous creditors.
The level of creditor pressure being received created extreme time restraints on coming to a solution. A notice of intention to appoint an Administrator was filed to protect the company whilst options were explored and considered. Real Business Rescue sat down with the company and Nottingham City Council to discuss whether they were able to offer anything to assist the company’s failing cash flow position. This proved unsuccessful.
Further attempts were made to source additional funding and to otherwise secure a buyer for the business. However the time restraints ultimately ruled out the possibility of the business being saved. With every possibility exhausted, the company entered into administration.
Following the company entering administration, some key members of staff were retained to assist with the winding down the company’s operations. Ultimately the administration resulted in 46 employees being made redundant. Real Business Rescue worked with these staff members to enable them to receive the redundancy pay they were entitled to in a timely manner. Work is ongoing to extract as much money from the company as possible in order to satisfy outstanding creditors.
“ It is regrettable to see the demise of such a long standing and well-regarded business however due to external factors the closure became inevitable. We are continuing to work with key members of staff to maximise realisations for the benefit of the company’s creditors and ensure that former employees receive their entitlements as soon as possible. ”Ian McCulloch, Partner