Patton collapse tips subcontractor into administration
A major subcontractor to the collapsed Patton Group has gone into administration with the immediate loss of 147 jobs.
Joseph Hughes Group, which included Joseph Hughes Painting Contractors and JH Industrial Cleaning Services, appointed PwC as administrators on Monday 3 December.
Joint administrator Stephen Cave said Joseph Hughes Group had been suffering cashflow difficulties as a result of the downturn in the sector. The collapse of the Patton Group, which went into administration on 6 November, had “made the group’s position untenable”.
Joseph Hughes was established in 1977. It is based in Dunloy with offices in Belfast, collectively employing 147 staff who provided specialist services to the construction sector.
Mr Cave, from PwC’s business recovery services department in Belfast, said: “The group has suffered growing cashflow difficulties as a direct result of the downturn in the construction sector.
“A company voluntary arrangement was already in place, but the collapse of Pattons has made the group’s position untenable and it can no longer continue to trade.
“We regret that we have this morning, advised the workforce that all 147 of staff will be made redundant, with immediate effect.
“We are conscious of the impact this will have on staff and their families and have been in touch with DETI and DEL to see if redundancy payments can be made as soon as possible.
“This is another severe blow to the construction sector and is particularly difficult for the workforce so close to Christmas.”
Paul Rooney, also from PwC’s Business Recovery Services department in Belfast, has been appointed the other joint administrator of the group.