Lagan Building Contractors, currently on site at the £35m Outwood Wharf development in Salford, is to enter administration along with three other Lagan Group companies.
According to the BBC, an internal staff memo from the group’s chairman Michael Lagan said there was “no option” but to place the four companies into administration, after delays and disputes on several projects hit the group’s building and civils arms.
The four companies affected are Lagan Construction Group Holdings; Lagan Construction Group; Lagan Building Contractors; and Lagan Water.
It is estimated that around 200 employees would be impacted by the administration.
Michael Lagan added: “I hope that some of those jobs could be transferred to joint venture partners whilst others may be relocated to divisions within the group.”
Lagan Building Contractors was appointed as main contractor on the £35m Outwood Wharf residential project in August last year, and had already started on site.
The project, funded by Invesco, includes 263 build-to-rent apartments and townhouses.
The company also has an office in Manchester at Central Park in Moston. According to its most recent accounts filed with Companies House, covering the year to 31 March 2016, Lagan Building Contractors reported a turnover of £29.8m and a pre-tax loss of £3.6m.
The group’s other 26 companies have not been impacted by the administration. Building materials group Breedon confirmed it was in talks to buy the wider group earlier this week.