ADMINISTRATORS are seeking to find a buyer for Newton-le-Willows-based White Building Services, which has closed with the loss of almost 200 jobs.
The firm, which dates back to 1925, was placed into administration with the loss of 181 jobs, including up to seven apprentices.
It is feared about 100 sub-contractors could also be affected.
Dermot Power and Tracey Pye, of BDO Stoy Hayward, were appointed joint administrators and are currently in talks with potential buyers.
Ms Pye said: “It is unfortunate that the economic climate and difficult trading conditions have significantly affected the construction industry.
“We are in talks with interested parties in an attempt to sell the business and preserve value.”
A source close to the company blamed its collapse on a cash flow crisis caused by the late payment of invoices by some of its customers.
One former worker, who wished to remain anonymous, said staff were told on December 11 last year that the firm was entering a consultation process in a bid to achieve a 50% reduction in the workforce.
He added: “We returned from the holidays but were sent home on January 4 and then made redundant on January 7.
“There was a mood of anger among the staff.”
The last published figures for the firm, for the year to September 30, 2008, revealed impressive growth in turnover and a determination not to become a casualty of the emerging credit crunch.
Managing director Stewart Bonnette reported a 270% increase in pre-tax profits of £653,000 and a 33% rise in sales of £27.9m.
At the time, the firm employed 250 staff within the two divisions of housing generation and projects, concentrating on the three relatively safe sectors of social housing, education and health.
Mr Bonnette said that, as of October 1, 2008, the order book stood at £25.2m.
He added: “Cautious development in the key sectors is called for now as we enter the new market conditions.”
However, despite the board’s best efforts, it is understood that bad debts have been the primary cause in the firm’s demise.
