Published: 21st June 2016
An inability to defend a winding up petition from HM Revenue & Customs (HMRC) has seemingly brought about the sudden collapse of a construction sector contractor with an annual turnover of roughly £80 million.
EIC is reported not to have been suffering from long term cash flow problems but nonetheless to have been left financially vulnerable when in receipt of an HMRC winding up petition in recent weeks.
According to the Construction Enquirer, EIC has been entered into administration with more than 300 of the company’s employees having lost their jobs as a result.
EIC based its operations in Warwickshire in the Midlands but reportedly had clients across much of England and in various parts of Scotland.
The company counted some of the UK’s largest construction sector operators including Carillion and Morgan Sindall among its clients.
Specialising in electrical and mechanical work in the context of the construction process, EIC also had working relationships with some of Britain’s biggest retail companies including the likes of Tesco and Marks & Spencer.
In addition to the 300 people directly employed by EIC, it is understood that the company’s entry into administration could impact many more professionals who worked for the business on a self-employed basis.
“I was told my services were no longer required on Friday and received a letter on Saturday. I didn’t see this one coming, it hits more than 300 staff but including self-employed its must have impacted over 1,000 people,” an unnamed former employee of the company told the Construction Enquirer.
Having been founded in 1971, EIC was the subject of a management buyout deal worth £40 million in 2010.
Among the projects with which the company was involved as it entered administration was the development of a new headquarters for the supermarket chain Aldi in North Warwickshire.
It had also been lined up to carry out work on a number of residential property developments in Dorset and Devon in the coming weeks.
Creditors of the business are understood to have been surprised to find that the company had entered administration as it did on Friday June 17th and have apparently been struggling to learn more about the details of its collapse. Real Business Rescue provide director advice online, over the phone, or in-person at one of our 78 UK offices or a place of your convenience.