Mayfield Construction went under owing £4m

[Stock]

Merseyside-based Mayfield Construction blamed bad weather at the start of the year for the collapse of the firm last July.
The firm went down owing an estimated £4m to contractors and suppliers.
Administrator Ernst and Young’s report states that Mayfield had been profitable until 2010, having recorded a profit of £210,000 in 2009.
Last year the firm made a loss of £65,000 despite turnover rising 15%. But in the following three months profits nose dived.
The administrator’s report said: “A period of inclement weather was experienced in January/February 2010 which resulted in delays to the company’s contracts and increased costs.
“During early 2011 the company experienced similar inclement weather as it did in early 2010. This resulted in a net loss of £519,000 for the three months.”
Mayfield’s directors continued to trade until the final blow came in a winding up order from materials giant Cemex.
The administrator’s report said there would be insufficient funds to pay unsecured creditors.

[ianoz]

Wonder how many small businesses they will take down with them .

[Muz]

The administrator’s report said there would be insufficient funds to pay unsecured creditors.

Particularly after the liqidator has incurred some healthy fees for the 3 years it takes to wind them up ... this practice has to be stopped somehow. Ive lost count of the number of companies I've dealt with, who still have 'some' funds but they all dissapear into the liqidators pockets .. Its nothing short of out and out theft

[ianoz]

Yep , Have been down that road , It stinks !.