黑洞社区

London M&E specialist Michael J Lonsdale has gone into administration after nearly 40 years in business.

The 拢250m Berkshire-based firm was set up in 1986 but earlier today Begbies Traynor was appointed administrator of a company that in its last set of accounts employed close to 250 people.

Both Michael J Lonsdale and Michael Lonsdale Group have gone into administration, a statement from the firm said today.

In the statement sent out to staff, seen by 黑洞社区, the company said it had been felled by a combination of the problems caused by covid-19 and Brexit and more recently the war in Ukraine 鈥渨hich has added further strain, with surging inflation, workforce shortages, project delays and supply chain disruptions鈥�.

>> Analysis: Anger and sadness at news of Michael J Lonsdale collapse 

It added: 鈥淥ur credit rating has suffered due to our limited credit with many suppliers, necessitating the need to make pro-forma payments for goods 鈥� a practice that is unsustainable for a business of out scale, with an annual turnover of over 拢250m.

鈥淭he combination of these challenges, coupled with the aggressive commercial tactics employed by certain general contractors, has regrettably led to this unfortunate situation.鈥�

The statement, signed by the firm鈥檚 directors, said it had tried to secure a refinancing 鈥渂ut regrettably we were unable to obtain the necessary interest from potential investors within the construction industry鈥�.

The statement said that directors Michael Hoodless and Gary Herbert would be the largest creditors of the group 鈥渨ith 拢50m in outstanding obligations鈥�.

It told staff it will be providing 鈥渆xternal support for our PAYE staff, assisting you in your claims for redundancy and notice payments鈥� and added: 鈥淭oday is an exceptionally difficult and sombre day for all of us. We wish you all the very best for your future endeavours.鈥�

In its last set of accounts for the year to September 2022, Michael J Lonsdale, whose rollcall of jobs includes 22 Bishopsgate, 8 Bishopsgate, the Paddington Cube and the Peninsula hotel, posted improved income of 拢191m and pre-tax profit of 拢2.5m, down from 拢2.6m the year before.

Reacting to the news, one major contractor said: 鈥淎bsolutely dreadful and cannot believe it. It鈥檚 so, so sad. Been working with MJL for 30 years.鈥� Another said: 鈥淏loody hell.鈥�

And one other major firm said: 鈥淎nother good company [gone] that has done great projects, been a higher performer in years gone by and served its customers well.

鈥淭he initial concern to the surviving masses will be the potential further moves taken by the bonds and credit insurance markets in tightening the availability of such securities 鈥� which are relied upon by funders and developers at the top and the supply chain at levels further down. A vicious circle [is] starting to form.鈥�