Up to 100 jobs hang in the balance after a Gloucestershire-based construction company succumbed to falling orders and fell into administration.
JP Group – which boasted a £25m turnover at its peak – specialised in building building petrol stations, car dealerships and office blocks.
But the Tewkesbury company suffered from “reduced investment spending” from major clients BP, Shell, Tesco and Morrisons.
It follows the collapse into liquidation of Glasgow construction company Donaghy at a cost of 175 jobs.
Nigel Morrison and James Stares of Grant Thornton have been appointed joint administrators for the firm.
They confirmed jobs have already been cut from various head office positions as part of an “immediate” cost-cutting program.
Administrator Stares said: “Unfortunately the business has suffered from reduced investment spending in the construction sector and whilst overhead costs have been addressed the company’s working capital requirements were simply too great.
“This is particularly disappointing given that the company has a healthy pipeline of potential new contracts, but delays in the commencement of these projects and pricing pressures have resulted in administration.”
The administrators added they are “urgently” ascertaining the feasibility of existing contracts in a bid to keep a reduced workforce to complete current projects.
The company was established in 1969 by chairman and CEO John Parrott.
Associated companies JP Demolition, Petroleum Decommissioning and TJP Homes have not entered administration.
By Andy Pearce
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