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Jobs Go After Longcross Construction Files for Administration

Written by: Keith Tully

Published: 19th June 2015

Dozens of people have been told they will lose their jobs after their employer Longcross Construction filed to enter administration in recent days.

There had been widespread uncertainty this week about the prospects for members of Longcross’ workforce but around 140 employees have now been told by administrators that their jobs will go.

Longcross Construction filed notice of its intention to enter administration at the High Court on June 16th, with the company unable to secure relevant support from creditors.

The company, which worked extensively as a construction contractor for some the UK’s largest retailers, generated £190 million in turnover in the 12 months prior to March 31st 2014. However, it was not able to register a profit in that period and in fact suffered losses worth around £1.35 million. 

Headquartered in Ashtead, Surrey, the company also has offices in London, Birmingham, Oxford, Exeter, Sidcup and Sheffield. It is part of the Longcross Group, which has previously stated that the business has been aiming to diversify beyond its core food retail market in recent months.

Some of the UK’s biggest supermarket chains have been scaling back their commitments to building new stores in recent quarters and it is though that Longcross’ financial performance and stability has suffered considerably as a result.

“The company had been quite focused on the grocery business where cutbacks have been made on store expansions and refits,” one of the company’s administrators said in a statement. “The directors concluded that the company was unable to continue to trade on this basis and resolved to place the company into administration.”

Other subsidiaries of the Longcross Group are said to be operating as normal and have not gone into administration as a result of the situation at Longcross Construction. Those subsidiaries include Longcross Fire and Security and LX Engineering.

According to the Construction Enquirer, Longcross had been preparing to undertake a 72-week construction job on behalf of Sainsbury’s in Surrey until the retail giant apparently changed its plans and shelved the entire project.

There are fears that around a dozen administrative staff working for the Longcross Group could also lose their jobs as a result of the organisation’s apparent financial difficulties.

Keith Tully

Keith Tully

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Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

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