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George Birchall Service enters administration

Steven Stokes and Raj Mittal, partners at FRP Advisory LLP, were appointed Joint Administrators of George Birchall Service Limited (“the Company”) on 28 March 2019.

Headquartered in Newcastle-under-Lyme, George Birchall Service provided facilities management and building services maintenance to clients across the UK from its offices in the Midlands and London. It specialised in four key disciplines of gas, mechanical, electrical and air conditioning and supported a wide range of public and private sector clients, including financial institutions, local authorities, leisure venues, hotels, food processing plants, supermarkets and commercial office buildings.

The Company experienced severe cashflow pressures in recent months and after unsuccessful attempts to sell both all and subsequently part of the business the decision was made to place it into administration. The business ceased to trade on 28 March 2019 and a majority of the 400 employees have since been made redundant or have transferred under TUPE to replacement contractors

Following their appointment, the Joint Administrators are now assessing options for the transfer of remaining customer contracts and are in discussions with the Company’s clients regarding next steps. A small number of employees at the Company’s Newcastle-under-Lyme and London offices have been retained to support with the orderly wind down of the business.

Steven Stokes, Partner at FRP Advisory in Birmingham, said: “George Birchall Service had suffered severe cashflow pressures in recent months, which forced the business into administration. Every attempt had been made by the directors to secure a more positive outcome for all concerned, however, when it came apparent in recent days that a sale of the business could not be achieved, the extremely difficult decision was made to place the company into administration.

“Our immediate priority is now to support affected employees and work closely with clients to ensure the smooth transition of contracts. We are hopeful that this will include the further transfer of a significant proportion of the workforce to alternative contractors.”