Midlands contractor calls in administrators

A Midlands building contractor that will be known to many kitchen houses in the catering equipment market has gone into administration.

Mansfield-based Baggaley Construction called in administrators KPMG on Friday after the directors said they had “no choice” but to seek help.

The affairs, business and property of both Herbert Baggaley Construction Limited and Baggaley Group Limited are now being managed by the joint administrators Chris Pole and Richard Philpott.

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Pole said the business had been under financial stress for some time due to “a number of loss-making contracts” and the continuing difficulties experienced in the construction sector.

“Despite a management buy-out last year and efforts to restructure and refinance, this difficult position has been compounded by ongoing losses and unsustainable cash flow pressure,” he said. “The directors were left with no option but to seek the appointment of administrators. We will now rapidly be assessing the options for this well-known business.”

Baggaley only celebrated its centenary four years ago and had a turnover of £35m at its peak. It did a lot of work with NHS Trusts, local authorities and higher education establishments as well as managing private sector contracts.

The firm employs 104 people. KPMG did not make any redundancies upon its appointment.

Nottingham-based Garners Food Service Distributor is one catering equipment distributor that knows the contractor well.

It tweeted this morning: “Yet another local contractor goes into admin. Always means more when you knew people well there. Wish them all the best.”

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