A Warwickshire based Building Services and Facilities Management Company, EIC Ltd has ceased trading, resulting in almost 400 job losses. Consulting and business advisory services firm, AlixPartners were appointed to handle the administration of business in June 2016.
A statement from AlixPartners said that the insolvency was down to the increasing pressure from creditors following a poor trading performance by the Building and Facilities Company. The statement released said “After exploring all options available, management concluded that the cash pressures were too great and there was no alternative but to place the company into administration.”
Founded in 1971 to provide building and installation services, the company stated that they had ‘over 1000 men in vans throughout the UK’ on their website. In accounts filed for the six months to 31 December 2014, the business turned over £38.1m with a pre-tax profit of £1.4m.EIC Ltd has previously worked with other major contractors including Bam Construct, Carillion and Morgan Sindall.
The company also stated in its last account information that their order book was strong, their liquidity position was ‘robust’ and that their financial performance that has vastly improved, would continue. These are some of the typical challenges businesses face on a day to day basis. EIC Ltd will probably leave somewhere between £10m – £20m of trade credit; unfortunately trade creditors are almost certain to lose any money they are owed.
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