GB Group to call in administrators

GB Group, the parent company of Stockport-based contractor and developer GB Building Solutions, has given notice that it intends to appoint an administrator, leaving 230 employees across the country potentially at risk of losing their jobs.

Staff at GB Building Solutions were informed of the decision on the evening of Wednesday 4 March and security was called in to secure the premises overnight. The GB Group website is no longer operational.

The company has seven offices across the UK with North West bases in Stockport and Wilmslow.

GB Group advises clients on construction, development, energy, IT, asset management and management services, with specialisms in care home schemes, student accommodation, residential, hotels and leisure, education and commercial projects.

The last accounts for the ending December 2013 show a pre-tax loss of £1.2m with a turnover of £211m.

The company was part of MJ Gleeson until a management buy-out in 2005 led by GB chairman Martin Smout. MJ Gleeson still has a 25% stake in the company, equating to a £4.9m investment.

In a statement to the stock exchange, MJ Gleeson said: "MJ Gleeson has been notified that GB Group Holdings Limited, in which the group has a 25% shareholding, has given notice that it intends to appoint administrators."

GB Building Solutions recently completed the main construction works at the £28m student accommodation element of Manchester Metropolitan University's Birley Fields campus in Hulme, the Future Tech Studio School in Warrington and the £10m King's Leadership Academy in Woolston.

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What happens to the workers that was on site and have not been paid

By Anonymous

GB were cynically bad payers and sadly an outstanding example how how the government are failing to ensure their sub-contractors get paid when they are supposed to. I am sure the knock on effect this will have on their supply chain will be horrendous.

By B.M.W Fiveseries