Contractor behind Liverpool FC’s ?80m Anfield Road stand …
Hundreds of jobs have been lost after the contractor building Liverpool FC’s Anfield Road stand extension collapsed into administration.
Buckingham Group Contracting had previously ceased trading and issued a notice of intention to appoint administrators on August 17[1]. Liverpool are still waiting to open the upper tier of their new stand, which will increase Anfield’s capacity to 61,000.
Grant Thornton has been appointed as administrator of the £700m-turnover group. The firm also announced a deal to sell the group’s rail assets and its HS2 contract to Kier for £9.6m, rescuing around 180 jobs.
However, 446 employees have been made redundant after a buyer for the building, civil engineering, demolition, major projects and sport and leisure operations was not found.
Mike Kempley, chairman at Buckingham Group Contracting, said: “After 36 years of uninterrupted trading, this is an extremely sad day for all the exceptionally committed and talented people who have made Buckingham Group Contracting the business it is.
“In moving to Kier, we are sure our rail and HS2 teams are in good hands and will continue to deliver an excellent service.”
Rob Parker, director at Grant Thornton, added: “The joint administrators intend to continue to operate part of the company’s head office function for a short period, in support of the purchaser, retaining around 45 employees.”
Mr Parker said the group had been impacted by recent significant cashflow pressures and subsequent losses.
He also said that the directors and its advisors had attempted to refinance to secure the future of the business but the ‘legacy issues’ faced by Buckingham Group and ongoing losses were too great.
The Buckingham Group is the principal contractor on the project to expand the Reds’ stadium by 7,000 seats.[3]
The £80m project had already been already been hit by delays, with a current target of mid-October for completion.
Work on Liverpool’s Anfield Road Stand began in September 2021, with hopes that it would have been be ready in time for the start of the new 2023/24 season.
A previous setback came when Essex-based cladding contractor SD Samuels – which was working on the roofing and cladding for the new stand – filed for administration in January.
Andrew Davies, chief executive at Kier Group, said: “We have previously stated that we would consider value accretive acquisitions in core markets where there is potential to accelerate the medium-term value creation plan.
Buckingham Group Contracting branding is seen outside the unfinished Anfield Road stand following the Premier League match between Liverpool FC and AFC Bournemouth
“This acquisition is one such example – it is an excellent strategic fit and accelerates our rail strategy, providing work with new rail clients and increasing our capabilities.
“I am delighted to welcome our new employees, clients and suppliers to Kier.”
Joe Incutti, group managing director at Kier Transportation, added: “The Buckingham Group rail business had built a very strong reputation for assured delivery in the rail sector.
“I am pleased that we now welcome 180 new colleagues into Kier Transportation.
“The team will further strengthen our capability and this helps to bring an end to a period of uncertainty for former Buckingham Group clients and employees by ensuring continued delivery on existing projects, and the retention of hugely important skills and expertise in the rail sector.”
References
- ^ August 17 (www.liverpoolecho.co.uk)
- ^ Click here to sign up to the BusinessLive North West newsletter (www.business-live.co.uk)
- ^ project to expand the Reds’ stadium by 7,000 seats. (www.liverpoolecho.co.uk)