Published: 29th April 2016
A construction company based in County Antrim in Northern Ireland has been entered into administration after failing to overcome a variety of financial and operational challenges in recent months.
T&A Kernoghan appointed administrators to manage its affairs in recent days, with several of the company’s suppliers left being owed thousands of pounds.
Around 50 full-time employees of the business, which worked on construction projects in various parts of the UK, have been made redundant with immediate effect.
A management buyout process was undertaken recently by the business with bosses suggesting soon after that this effort had saved dozens of jobs directly and meant several hundred sub-contractors would still be working with T&A Kernoghan going forward.
However, the business was hit by significant operational setbacks during 2015 when it was taken off two separate construction projects in different parts of Scotland.
In August, the company was removed from the processes involved in building a new golfing clubhouse by the South Ayrshire Council and a month later was taken off a £2.2 million scheme led by the Gorebridge Community Development Trust that was focussed on building a new community centre in the area.
According statements made by company directors, the management buyout process involving T&A Kernoghan was necessitated by losses incurred by the business over the course of its involvement in building a Sikh temple in Glasgow.
Statements from newly-appointed administrators said: “Following our appointment, it is with regret that due to the extent of the Company’s financial difficulties, the Joint Administrators have been required to make all staff redundant and cease operations across the various building sites throughout the UK.
“The Administrators and their staff will be responsible for maximising value for the Company’s stakeholders through the realisation of the remaining assets of the Company.”
Administrators also noted that a winding up petition had been brought against T&A Kernoghan in recent days, with that petition having subsequently been supported by several of its other creditors.
According to the Belfast Telegraph, the company owed one of its creditors as much as £800,000 upon its entry into administration, which is now understood to have left that as-yet-unnamed Northern Irish construction sector business in danger of collapse. Our extensive office network comprises 78 offices across the UK with a partner-led service offering immediate director advice and support.