Published: 29th March 2016
A construction firm based on Merseyside has completed a pre-pack administration process that sees between 30 and 40 of its employees remain in their posts and the business rescued from the prospect of collapse.
The Paragon Construction Group began seeking advice on its rescue and administration options at the beginning of the year with plans for a pre-pack deal drawn up soon after.
After continuing to see their company’s financial position worsen in recent weeks, Paragon’s bosses took the decision to enter the business into administration.
Assets belonging to the business were acquired via the pre-pack administration by a company called Mason Lord, which is based in St Helens and owned jointly by John Mason and Paul Barrow, who had been managing director of the construction group.
“We are pleased that the sale of the company to Mason Lord has resulted in 30 jobs being secured,” administrators called into to help rescue the business said in recent statements.
“We considered a number of options including trading the business in administration while a buyer was sought, but concluded that the practicalities and costs of doing so would be prohibitive.
“After marketing the business, we determined that a pre-packaged sale to Mason Lord Limited would be in the best interests of creditors.”
Although a majority of Paragon’s employees remain in their posts in the wake of the pre-pack administration having been carried out, a total of 10 former members of its workforce have been let go in recent days.
Paul Barrow is listed as being the sole shareholder of the recently rescued Merseyside construction group, which had been struggling to meet its commitments to creditors over the course of recent months.
The construction business has previously worked on a broad range of projects with several public-backed bodies including the National Health Service, Sport England and the Ministry of Defence.
Paragon was first incorporated in May 2001, with its activities focussed primarily on projects involving the construction either of commercial or domestic buildings in various parts of the UK.
The company is registered as being based in St Helens and traded as Paragon Building Services between 2001 and 2009.