Published: 08:02, 15 August 2016
Building firm Cardy Construction has finally broken its silence after filing for administration last month.
Directors admit that unfinished projects are likely to be left to others to complete and that remaining companies in the Cardy fold also face an uncertain future.
Shockwaves reverberated through the district’s building industry with the news its biggest firm faced ruin.
But shock gave way to confusion and anger as directors repeatedly refused to shed light on what had gone wrong.
Chairman Stuart Gremo has now spoken, confirming that an administrator has been appointed.
In a statement subsequently released, the directors say the company has been forced into administration due to events beyond their control.
“Delayed starts to a number of significant projects, combined with complications in recovering sums rightfully owed to the company on completed projects, put the company under cash flow pressure,” say the directors.
“The company has exhausted options in sourcing alternative long-term investment and refinancing needed for the business to continue.”
Cardy Construction’s directors are Mr Gremo, Michael Stannard, Lee Johnson and Chris Gremo, Mr Gremo’s son.
In their statement, the board members admit that “remaining companies within the Cardy Group” were likely to be impacted by the situation.
“It is anticipated that many of Cardy Construction’s unfinished projects will now be completed by others who we hope will re-employ many of the Cardy workforce and suppliers,” they say.
Some 220 jobs are thought to be at stake, while subcontractors have reported fears that cash owed them may go unpaid.
“The directors are working tirelessly with clients, staff, creditors and the administrators to ensure the next few months are handled as sympathetically as possible,” say the board members.
The firm, founded in 1946, filed a notice of intent to appoint administrators on Monday, July 25, triggering widespread dismay.
Building work ground to a halt at numerous sites including the 539-room student accommodation rising opposite the historic city walls.
Another project hit is a scheme of 12 townhouses at Pound Lane behind the Jaguar showroom.
"The company has exhausted options in sourcing alternative long-term investment" - Stuart Gremo
Cardy’s fall comes despite boosting turnover by more than £25 million to £67.6m in the year to March 2015, helped by contracts with Rolls-Royce and BMW.
In their statement, the directors add: “The directors would like thank their staff, clients and suppliers who have been associated with Cardy Construction and whose contributions helped build such a fine and respected company.
“Since its formation, Cardy Construction has generated over £300m of business throughout the South East and has been responsible for constructing some of the finest buildings in the area.
“The directors are also proud that Cardy has been able to sponsor and support many social and charitable good causes in the local district.”
Inquiries are directed to the firm’s administrator, Matthew Vanderman at RSM on 02380 646464.
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More by this authorChris Pragnell