Pictured above: Beverley Marsh
Beverley Marsh of RSM Tenon's Birmingham corporate recovery
office has been appointed joint administrator for the
Coventry-based GAJ Group after it ceased to trade last Tuesday
(25.1.11).
RSM Tenon is carrying out the administrations for GAJ (Holdings)
Limited, GAJ Construction Limited and GAJ Planned & Reactive
Maintenance Limited.
33 employees of GAJ Construction Limited, based in Westwood
Business Park, received redundancy letters from the company on
Wednesday (26.1.11).
The three GAJ companies together turned over £18.5 million
in 2009.
Bev Marsh, director at RSM Tenon, said: "It appears that the
group's situation has been caused by a combination of factors. Not
only has the economic downturn spelled disaster for a number of
regional and national firms in the construction sector, but with
public spending cuts GAJ had suffered from the reducing numbers of
tenders in the market."
Earlier this year, RSM Tenon warned about the 'ripple effect' in
the West Midlands, where smaller firms in the region were fighting
for survival following the collapse of construction giants
Connaught and Rok.
Bev added: "What we are seeing in the construction sector is the
result of a ripple effect right across the supply chain. When a
large business fails, the knock on effect can be devastating as it
can filter right through the whole industry - it is not uncommon
for failures of businesses four or five levels removed from a large
failure to occur 12 months or more later on."
RSM Tenon was this week also appointed as administrators for
property and construction firm, the Image Styles group based in
Tipton, West Midlands.