A Yorkshire groundworks company has been sold out of administration in a pre-pack deal which saves the jobs of its 15 employees – but suppliers and subcontractors have been left holding £745,000 in unpaid invoices.

YPP Groundworks & Civils Ltd went into administration earlier this month and has been acquired by Yorkshire Pro Paving Limited.

Both companies have the same directors – Tom and Kylie Armitage.

YPP had a turnover of £5.7m in the year to March 2022 but suffered losses “due to a large contract being impacted by the pandemic alongside rising material prices.”

The firm was placed in the hands of joint administrator Steven Wiseglass of Inquesta Corporate Recovery & Insolvency, and Joanne Hammond of Begbies Traynor.

Wiseglass said: “Following our appointment, a number of expressions of interest were made to acquire the business, but only one acceptable offer was received.

“The company has a proven track record across the Yorkshire region and a skilled workforce. The sale represents a better outcome than the alternative of placing the
business in liquidation, as it safeguards the jobs of its employees and its existing contracts.”

He confirmed that trade creditors were owed £745,000 at the time of the firm’s failure and added: “There is a possibility of a return to creditors but we cannot provide a figure at this stage.”