黑洞社区

A problem contract in the luxury residential development sector was the trigger for Doyle Group falling into administration last Thursday, 黑洞社区 understands.

Administrator Deloitte was called in to the Doyle Group, which includes John Doyle Construction, fit out contractor Ibex Interiors and plant division Blythewood, , leading to the loss of

It has now emerged that Ibex had run into difficulty on a luxury flat development in central London for an overseas client. It is understood that the contract was terminated.

Sources close to the business suggested that this was the trigger for the group鈥檚 collapse, although it is understood that the business had been struggling financially for the last two years as the recession hit the company鈥檚 core markets.

It is understood that a process to sell Ibex was underway prior to the firm going into administration, but a deal was not forthcoming.

Richard Hawes, joint administrator and partner in Deloitte鈥檚 restructuring services practice, confirmed this was the case and said this process had been 鈥渁ccelerated鈥� after the business went into administration.

However, he said despite their being 鈥渃orporate finance in place鈥�, a buyer could not be found. 鈥淲e did not find anyone that was prepared to take it on at any value, so [the business] has been closed,鈥� he said.

Hawes confirmed that Ibex Interiors had run into difficulties on a particular project in the high-end residential sector, but would not comment further.

He said the both John Doyle Construction and Ibex had suffered 鈥渨orking capital strains鈥� and had 鈥渟truggled to get customers to pay on time鈥�.

He said there had been 鈥渘o interest at all鈥� from buyers for John Doyle Construction, a concrete specialist that carried out work for a host of main contractors. 鈥淥nce a firm like that goes into insolvency it鈥檚 very difficult to trade. Effectively we鈥檝e closed it,鈥� he said.

He said some of the two firms existing contracts could be sold on, either individually or in batches, but that would depend on the customers. 鈥淭here would need to some value for the customer in doing that,鈥� he added.

He said the banks had been 鈥渆xtremely supportive鈥� in trying to keep the business afloat. 鈥淭he bank advanced substantial money to keep it going but there was not sufficient cash flow to keep trading or to find a buyer,鈥� he said.

He added that there would be a range of creditors, including sub-contractors and employees, but said it was too early to put a figure on the amount owed.