Clovemead Limited, a highly regarded and familiar name in the North West with a significant national presence since 1980, went into Administration on Monday 11 March. The firm appointed Partners, Allan Cadman and Charles Brook, as Joint Administrators.
The independent contracting specialist company with expertise across construction, minor works, fuel systems and signage has a reputation for quality and safety, with each division working seamlessly across various disciplines to provide clients in a variety of highly specialised, secure and regulated environments with fully managed solutions.
Operating out of premises in Warrington and Widnes the company employs over 50 staff and had close relationships with numerous trusted sub-contractors across the region, providing services to various blue-chip and high-expectancy clients as well as local authorities, universities, schools and colleges, automotive manufacturers, distributors, and retail services.
When the company’s traditional sources of business started to fall into decline, the directors approached Poppleton & Appleby for assistance in achieving a managed work-out of existing projects whilst seeking potential acquirers of the material parts of the business.
This culminated in a satisfactory disposal first of the Company’s Fuel Systems operations, together with existing contracts and personnel, and the Signage division, both of which operated from the Widnes premises. In each case, the buyers are independent of the company and are successful companies in their own right. As a result of these sales, 25 staff have retained employment.
Although some residual staff are being made redundant, Poppleton and Appleby are continuing to work with the former management and directors in assisting existing customers of the Construction division to fulfil on-going projects. This is likely to lead to further realisations for the benefit of the company’s creditors, as well as providing potential continued employment for more of the personnel.
Sub-contract creditors, suppliers, staff, and Poppleton & Appleby are mindful of the impact on customers and are continuing to liaise with them to achieve the best outcome, minimising the financial and social impact of the company’s collapse.
Their familiar branded red vans will continue to be seen around the UK, particularly in the North West, as the purchasers seek to endorse their trust in the company’s reputation for quality and safety which will still be delivered by many of the former personnel.
Allan Cadman, Joint Administrator based in Poppleton & Appleby’s Manchester office, said:
“We are proud to have been selected to assist such a well-regarded company in achieving such a positive outcome. Although unable to preserve all jobs, we are confident that the outcome will assure many long-serving staff of future employment and retain critical skills within the region.
“Clovemead is a good example of the kind of results that can be achieved with early intervention and a willingness to explore commercial prospects in a bespoke manner. This is perhaps one of the finest examples of our own specialisms, and it has been a pleasure working with the company and its other advisers and senior personnel in this exercise. We are grateful for the trust, support and commitment of all at Clovemead and their clients that we have received.”
Please contact us today should you need any advice if you are in a similar situation.