Longcross construction axes 130 staff

Longcross Construction have axed 130 staff because the loss of contacts toSainsburys and the group is said to have filed a notice to enter administration,Delottie are handling the lay off’s and administration of Longcross Construction other staff at its head quarters are also waiting to find out if they will lose their jobs.

longcross administation
longcross administration

A source has said that Sainsburys  has cut back on many of its refurbishment and new builds which Longcross were lined up to do.

“We were mobilising to do a major £34m Sainsbury’s store at Redhill under a 72-week contract and suddenly it all went quiet.We heard that some other planned Sainsbury’s projects were also stopped and assumed word had spread subcontractors weren’t being paid on time.”

Longcross Construction has had trouble in March of this year when it closed offices in Oxford and Derby laying off up to 30 staff and also had trouble with the £6.5m Esher 60-bed care home project, which is running behind schedule along with a a £15m Volxwagen showroom build in Brentford which is believed to have over ran costing the company penalties.

First warning signs that Longcross had run into trouble came in March, when the management decided to close offices in Oxford and Derby laying off up to 30 staff.

The firm is understood to be struggling to meet subcontractor payment demands with a source commenting that “Payments stopped going out three weeks ago and I think we all knew the situation was looking dire.”

The collapse of Longcross has also hit developer Criterion Capital, which is understood to have put up significant upfront funding to deliver a £48m trio of offices to flats schemes in Croydon.

Many contractors have and companies have claimed that they have not been paid and do not think they are likely to see payments.

The companies web site has been taken down with the following message displayed on the site.

Lee Manning and Matt Smith of Deloitte LLP were appointed Joint Administrators of Longcross Construction Limited (“the Company”) on 16 June 2015. In addition, the directors of Longcross Group Limited also filed a Notice of Intention to Appoint Administrators to Longcross Group Limited.

No other companies within the Longcross group of companies have been affected by the above actions (LXE South Ltd, LXE North Ltd and Longcross Fire and Security Ltd are all trading normally under the control of their directors).

If you have a query relating to the Company, please email longcross@deloitte.co.uk<mailto:longcross@deloitte.co.uk>; or call 020 7303 8331

Lee Manning and Matt Smith were appointed Joint Administrators of Longcross Construction Limited (in Administration) (the “Company”) on 16 June 2015.The affairs, business and property of the Company are being managed by the Joint Administrators. The Joint Administrators act as agents of the Company without personal liability. The Joint Administrators are authorised by the Institute of Chartered Accountants in England and Wales.

 

,