Mansell collapsed with debts of £4.2m
The off-site construction specialist entered administration in August due to a combination of factors including the cost of relocating its HQ to Oldham, the impact of Covid on revenues, and planning delays.
An administrators report published on Companies House by RSM sets out the circumstances behind Mansell Building Solutions’ demise after 36 years of trading.
The firm, founded in 1990 and run by sisters Angela and Stephanie Mansell, went under with debts of £4.2m, including £1.3m owed to NatWest, which had provided a line of credit for the company since 2008.
Creditors also include Voestalpine Metsec, the company that supplied Mansell with light gauge steel framing, and builders merchant CCF. They are owed £550,000 and £220,000 respectively.
In 2021, the year after reporting a £3.2m loss for Covid-blighted 2020 when revenues fell from £21.4m in 2019 to £7.6m, Mansell relocated its HQ and manufacturing facility from Middleton to Horwich.
However, the company was forced to relocate to Oldham after less than four years later having been served a noise abatement notice following complaints from residents living near the Horwich site.
The additional costs associated with the relocation were among the reasons Mansell sought to agree a new deal with NatWest, increasing its overdraft facility by £400,000 up to £900,000, according to RSM’s report.
Following the refurbishment of the Oldham site, Mansell “experienced a downturn in trade” due to several projects being delayed through planning. This was born out in the end of year management accounts for 2025, which showed a £760,000 pre-tax loss. Revenues were also down £2.5m compared to 2024.
The cost of the project delays alone was more than £550,000, RSM said.
To cut costs and cover the income shortfall, the directors agreed to each take a £20,000 pay cut. £300,000 of cost savings were also identified.
However, in the end this was futile as NatWest turned down a new five-year loan of £860,000 to plug the gap, leading to the appointment of administrators.
