Struggling Eco Modular Buildings has been sold to Spatial Initiative Limited.
PricewaterhouseCoopers (PwC) was appointed as joint administrators of Eco and parent company Rawson Brook Group Holdings following ‘significant operating losses’.
The offsite modular construction companies, both in Hull, worked mainly in the education sector.
The Group had seen significant revenue growth since it was established in 2016.
However, from 2020 it began to experience a series of challenges that required additional funding to keep trading.
Then, throughout 2022, the Group saw significant delays on projects, resulting in operating losses, eroding available capital.
PwC was brought in in August 2022 to review the Group’s cashflow and to carry out an independent business review, whereafter a sale process was agreed.
Spatial Initiative, part of ESS Group, then acquired the business and assets of the Group, and while most of its 65 employees transferred to Spatial, ‘a small number resigned immediately prior to or on appointment’.
“The deal represents the best option available to the creditors as a whole under severely limited timescales,” said PwC.
PwC added: “Particularly during the current testing economic climate, the completion of this transaction provides much needed certainty to over 50 members of staff after a period of understandable concern following the Group’s challenges over the past months. We would like to wish the purchaser, and the Eco employees, every success in their next chapter together.”
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