Lincolnshire

Lincoln-based Simons Group collapses after high street building decline

Simons head office in Lincoln
Image caption Simons Group - based in Lincoln - entered administration on Tuesday

A family building firm founded in the 1940s has gone into administration, putting more than 120 jobs at risk.

Simons Group, based in Lincoln, specialised in retail, healthcare, and commercial projects across the UK.

The firm cited challenging trading conditions, contract delays and cashflow problems.

Administrators FRP Advisory said it was winding down the business "which will unfortunately result in employees being made redundant over the coming days".

Up to 124 job losses are expected, with some staff retained while alternative firms are sought to serve existing contracts, FRP Advisory said.

Joint administrator Nathan Jones said: "After a period of challenging trading the directors of Simons Group were left with no choice but to enter the business into administration."

"Our initial focus will now be on working to ensure that any live contracts are transferred across to new contractors with minimal disruption."

'Growing trend'

The firm served a number of high-profile customers including Primark, Morrisons and Marks and Spencer.

David Price, finance editor of Construction News, said Simons had a lot of exposure to the retail sector, which faced increased competition from online retailers.

Delays to several multi-million pound retail projects were "a major factor" in the collapse, he said.

However, he said he was hopeful employees would get "picked up quickly" due to a shortage of skilled labour across the wider industry.

It comes after a number of similar sized companies "had gone to the wall" in recent months, he said.

Other firms have cited uncertainty over Brexit for project delays, leading to similar problems, he added.

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