TOWN construction firm Frank Galliers Ltd has gone into liquidation with debts of more than £9.9 million owed to more than 400 creditors.
Company directors attended a meeting in Telford yesterday, Wednesday, to explain why the company ceased trading with the loss of more than 130 jobs. Director George Butler laid the blame for the liquidation firmly on a dispute with the Centre for Alternative Technology in Machynlleth which left Frank Galliers with a bill for more than £500,000.
Creditors at the meeting were told only around £128,000 would be left in the coffers following the company’s liquidation. A statement of affairs prepared by the directors shows debts of £9.9 million, including around £4 million to National Westminster Bank and £2 million owed to sub-contractors. However, the statement also listed a £4 million sum which is owed to Frank Galliers from other companies under the same parent group Pan Atlanta, but which the directors say cannot be realised.
Unfortunate
Speaking for the first time since the company shut its doors, Mr Butler said he was ‘hugely disappointed’ that the company had been forced into voluntary liquidation. He said: “Our opinion is that this was an unfortunate contract dispute. Construction is a tough industry and the margins are pretty small. Over a period of time we consolidated the activity of the business, going for large contracts.
“Two days after we ceased trading, I understand the company was the lowest bid on a large project in the town worth around £6 million and there was another possible project where we were also the lowest bidder.
“Had it not been for the contract dispute which has caused the demise of the company, and if a comprise had have been reached with that party, then I feel sure that the situation would be very different from what it is today.”
The Centre for Alternative Technology was awarded the settlement last month following an investigation by an independent adjudicator following a dispute with Frank Galliers over a £5.4 million building project at the site.