Buckingham Group Contracting has confirmed it has ceased trading and is looking to sell parts of the business “in a very short period”.
The Enquirer revealed on Thursday morning that the firm had filed a notice on intention to appoint an administrator.
In an update Buckingham said: “It is with immeasurable regret that the Buckingham Board has to announce that rapidly escalating contract losses and a sharp reduction in liquidity, together mean the Company is unable to continue trading at this current time.
“We know that this will come as a shock to all our valued stakeholders.
“As a result of the recent challenges, the board has filed a Notice of Intention to appoint Administrators to protect the business whilst we explore a sale of all or part of the business in a very short period (days/weeks).
“We will be liaising with clients and interested parties to optimise any solution and secure the best outcome for creditors.
“We emphasise the Company is currently not in Administration.
“Our main aim at present is to seek to protect jobs, and to preserve as much of the business as possible.”
The firm added: “Very strong delivery and commercial performance across most of the business has been outweighed by deep losses and interim cash deficits incurred on the three major Stadium and Arena contracts, and a substantial earthworks contract in Coventry.
“This situation on these four long term major projects developed through a combination of unexpected impacts such as the extreme inflation linked to the Ukraine conflict and other challenges in the Sports and Leisure division.
“Over several months and right up to this week, the Board has worked with specialist advisors to seek to bring substantial new investment into the business that would have enabled the Company to continue trading as a going concern without interruption. However, this initiative has ultimately met without success.”