Award-winning Blackpool construction firm goes into administration after being hit by a raft of pandemic problems

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Building work is set to continue on the extension to the Hampton by Hilton hotel on South Promenade, despite the resort-based firm behind it going into administration.

 

Award-winning Create Construction ran into trouble this month putting 50 jobs at risk, as a raft of post-pandemic issues hit its cashflow.

The 16-year-old firm is part of the Create Group, but the other businesses in that organisation are not said to be affected.

It has overseen the building of a raft of high profile buildings including multi-million pounds student flats schemes across the north and Hampton by Hilton hotels.

Staff from Create Construction topping out a the Hampton By Hilton hotel they built in Manchester in 2019

Staff from Create Construction topping out a the Hampton By Hilton hotel they built in Manchester in 2019

Paul Mathison, chief executive, said after exhausting all other options they were heartbroken to have to put the Whitehills-based company into administration.

He said: “The pandemic has severely affected both our clients and our supply chain’s ability to meet their contractual arrangements.

“An overrun in projects in both time and budget, a number of supply chain failures and delays to a secured pipeline of projects, has ultimately made the company unviable.

“The pandemic has effected every area of our business, from delays in pipeline projects achieving planning approval and concluding funding, to access being restricted or denied into completed operational student accommodation buildings to allow us to complete 12 months defects works and to release significant retention monies owed to our supply chain.

Paul Mathison

Paul Mathison

“Having set the business up in 2006, we have worked hard to build our reputation in a competitive sector and we are proud of the fabulous schemes that we have delivered over the years.

“The construction industry continues to be hit hard as a result of the pandemic, with significant rising costs and limited resources available. As a consequence, we have seen the failure of some reputable and established companies like ourselves.”

Chris Ratten and Lindsey Cooper of RSM UK Restructuring Advisory LLP were appointed as joint administrators. Mr Ratten said: “Create Construction Limited has recently encountered a number of issues that have led to significant cash flow pressures.

“The business has been adversely impacted by increasing costs of building supplies and subcontract labour. We are now working closely with the company’s customers and subcontractors to ensure current projects are reassigned.

“It is hoped many of Create Construction’s on-site roles will transfer to other companies to ensure the continuation of ongoing construction projects.”

The building of the £20m Hampton by Hilton in Blackpool involved some lending from Blackpool Council.

Alan Cavill, Blackpool Council Director of Communications and Regeneration, said: “It is very sad to hear that a local company has had to go into administration. However, the council’s agreements in respect of the Hampton by Hilton (existing and the extension) are with Create Developments Ltd a completely separate company with a different Director make up.

“The hotel trades well and all agreements with the council are being upheld.

“The extension has already started so the adjacent site is no longer a car park. The client for this work is Create Developments. They are making arrangements to transfer the contract to a new company from Create Construction. The council has not had direct dealings with Create Construction.”