Ennstone employs 1,300 in the UK, producing and supplying building materials – particularly concrete and aggregates. Ennstone’s US unit sought Chapter 11 bankruptcy protection last month.
The company’s board said that the group had been facing “the most challenging economic conditions for decades”, which not only hit performance but also prevented the company from raising funding or achieving sales at a good price.
Matthew Cowlishaw, joint administrator, comments: “The slowdown in the house building and infrastructure sectors, along with the lack of funding for potential acquirers has played a significant role in the group’s difficulties. Over the past eight months the group has explored a broad range of strategic options, including the possibility of raising new equity via the sale of parts of the Group’s businesses, but has been unable to achieve a solvent restructuring. The sale of the UK and Polish operating subsidiaries to Breedon Holdings Ltd, a new company jointly owned by Barclays Ventures and the former management team, will safeguard over 1000 jobs. This is really positive news for both the employees and the industry during this very difficult time.”
Matt Cowlishaw and Nick Dargan of Deloitte are appointed administrators.