Jobs saved in pre-pack sale of Otley-based groundworks business
A groundworks company has been sold out of administration in a pre-pack deal which saves the jobs of its 15 employees.
Steven Wiseglass, a director at Manchester-based Inquesta Corporate Recovery and Insolvency, and Joanne Hammond, a partner in the Sheffield office of Begbies Traynor, were appointed as joint administrators of YPP Groundworks & Civils Ltd earlier this month. The business, which is based in Otley, West Yorkshire, has been acquired by Yorkshire Pro Paving Limited.
A spokesman said: “YPP Groundworks & Civils, which was incorporated in 2014, won a series of awards and built a solid reputation undertaking groundworks for domestic and commercial customers in the public and private sectors. The company grew in size, and in the year to March 2022 generated turnover of £5.7m. However, it experienced pressure on its cashflow due to a large contract being impacted by the pandemic alongside rising material prices, and swung to a loss.”
Mr Wiseglass said there was no prospect of securing new funding for the business.
He added: “Following our appointment, a number of expressions of interest were made to acquire the business, but only one acceptable offer was received. The company has a proven track record across the Yorkshire region and a skilled workforce. The sale represents a better outcome than the alternative of placing the business in liquidation, as it safeguards the jobs of its employees and its existing contracts.”