Paragon MD completes pre-pack rescue
Thirty jobs have been saved at St Helens-based Paragon Construction after the business was sold out of administration to Mason Lord, a company related to Paragon MD Paul Barrow, a former director of St Helens Chamber of Commerce.
Lindsey Cooper and Jeremy Woodside of RSM Restructuring Advisory LLP were appointed joint administrators of Paragon Construction Group Limited on 11 March.
Subsequent to the appointment, the company’s assets were sold to Mason Lord Limited in a pre-pack deal.
Of the 40 staff at Paragon, 10 were made redundant while 30 were retained by the new company.
The directors of Paragon Construction, based at Jackson Street in St Helens, sought advice from RSM Restructuring Advisory in January 2016 as a result of the company’s deteriorating financial position.
Lindsey Cooper, RSM Restructuring Advisory partner and one of the Joint Administrators said: “We are pleased that the sale of the company to Mason Lord has resulted in 30 jobs being secured. We considered a number of options including trading the business in Administration while a buyer was sought, but concluded that the practicalities and costs of doing so would be prohibitive. After marketing the business, we determined that a pre-packaged sale to Mason Lord Limited would be in the best interests of creditors.”
The transaction has also received the approval of the Pre Pack Pool, a peer group of insolvency practitioners.
Mason Lord was incorporated in October 2012 and is described at Companies House as a management consultancy. The company has two directos, Paragon’s Barrow and John Mason. In 2005, Mason’s Albany Assets was part of a failed bid to develop a 44-storey tower in Manchester’s Piccadilly, one of several grand plans for the area aborted in the financial crisis. Albany Assets redeveloped the Albany Building in Liverpool into flats before going into receivership in the recession and eventually being liquidated in 2011.