WIGAN’S economy suffered a blow after a shop-fitting firm went into administration with the loss of 10 jobs.
The entire workforce of Naylor and Walkden Construction Services, based in Standish, was made redundant after Cowgill Holloway was appointed by the firm’s director.
The business, based on the Bradley Lane Trading Estate, had seen its fortunes nosedive following the loss of two large contracts and was then unsuccessful in bidding for several other jobs as it tried to recover.
The administrators were left with no choice but to end the employees’ association with Naylor and Walkden on October 2 as there was no value remaining in the contracts.
The firm had previously done refurbishment and shop-fitting work for a number of top high street names including Greggs, Boots, Wilkinson and toy store Smyths.
However, it is not the first time Naylor and Walkden has hit financial difficulty as it was forced to call in administrators and offer its previously Chorley headquarters for sale in 2012.
A statement from Cowgill Holloway read: “During the first quarter of 2015 the company suffered significant losses on two very large contracts.
“This had a severe impact on the forecasted short term cashflow for the business and as a result the company prepared revised projections to take these losses into account.
“The company had been successful in a large contract which was due to commence in January 2016 and the revised projections showed that the company could survive provided it was successful in winning a number of the tenders that it was awaiting confirmation on. Unfortunately in September 2015 the company discovered that none of the tenders had been successful and after reviewing the work in progress it became apparent that the company could not survive beyond the next few weeks and at that time the directors took advice from their accountants to seek professional advice.
“Unfortunately after a review of the remaining contracts of the company there was no value in the remaining contracts and consequently all members of staff were made redundant.”
The future of the business now remains unclear, but the administrators say discussions with contractors are ongoing.
Joint administrators Jason Mark Elliott and Craig Johns are in the process of preparing their proposals on the company’s finances, and Naylor and Walkden’s filed accounts have been made available to view at the Registrar of Companies website.
Earlier this week we reported on a second job loss story with the decision by one of Wigan’s biggestemployers to reduce its workforce. Bookmaking giant Betfred announced the closure of theit national call centre in the town centre.
If the plan goes ahead after the required 45-day consultation, 14 full-time and 98 part-time posts will be lost, although there is hope that some of those affected can be redeployed.
Wigan Council said it was disappointed the administrators had been called in and urged anyone who had been affected to seek assistance from the town hall.
Emma Barton, Wigan Council’s assistant director for economic development and skills, said: “We are saddened to learn that this Wigan-based company has gone into administration.
“We will be in touch with the administrator to see if employees who have lost their jobs require support to enable them to re-gain employment as soon as possible.
“Businesses facing difficulties are encouraged to engage with us early on so they can access support from our dedicated team.
“At Wigan Council we are working hard to strengthen our economy and bring investment into the borough to create jobs and opportunities for our residents.
“The Wigan Business Expo last week showed we have many thriving businesses in the borough and our new economic prospectus sets out our high ambitions for the coming decade with the creation of 10,000 new jobs.”
For more information on business support visit www.wiganworks.com