A major construction firm has fallen into administration after trading since 1970, administrators blamed “wider economic headwinds” which is the primary reason for the collapse of the plant dealer.
Nearly all of Warwick Ward (Machinery) Ltd’s staff has been made redundant, and it was one of the UK’s largest stockists of earthmoving and waste recycling equipment.
The company has their headquarters based in Barnsley, Yorkshire with depots in Harlow, Essex and Bromsgrove, Worcestershire.
According to reports all 89 staff have been made redundant.
Joint administrator James Lumb said, “Employee ownership trusts (EOTs) can often be highly successful, creating an exit route for shareholders, and bringing long-term operational and cultural advantages across the business.
“However, the additional debt that many such companies take on as part of the sale to an EOT can prove to be a burden further down the line, particularly if trading conditions become difficult.
“In Warwick Ward’s case, the debt accrued as part of its transition to employee ownership was certainly a contributory factor in its difficulties.
“Ultimately, however, it was the wider economic headwinds buffeting the construction and waste recycling sectors that served to place unsustainable pressure on the company’s cashflow, which in turn led to our appointment as administrators.”
