UK contractor Lee Group has ceased trading with immediate effect with the loss of all 90 full-time and contract positions. Reports suggest that the company’s debts exceed £3 million (US$4.9 million).
Ranked at 52 in this year’s D&Ri 100 with a reported turnover for 2012 of £18.7 million (US$30.6 million), the company entered a Company Voluntary Arrangement in September 2013 under which it could continue to trade and creditors would be paid a dividend of £0.23 in the pound for five years. This was an alternative approach to liquidation.
However, according to accountants Begbies Traynor there had been delays in customer payments and a declining turnover, which have together prevented the company from surviving. Begbies Traynor, with the support of HM Revenue & Customs who is said to be owed £715,000 (US$1.2 million), is reported as having petioned for the liquidation of the company.