Dozens of redundancies as 122-year-old Wolverhampton construction firm AMG collapses

Dozens of workers at a Wolverhampton building contractor have been made redundant after the firm went into administration.

Construction in progress on the new Stourport Medical Centre
Construction in progress on the new Stourport Medical Centre

A total of 44 employees have lost their jobs after Arthur M Griffiths (AMG), based in Thomas Street, ceased trading on Friday. The company, which was founded in 1899, is now in the process of being wound up.

AMG was building the new £7 million Stourport Medical Centre in Dunley Road, which is to replace the existing Stourport Health Centre and York House Medical Centre in the Worcestershire town.

The project had reached the half-way point in March and had been due to welcome its first patients this autumn.

AMG's failure has been blamed on a combination of the Covid-19 pandemic and Brexit.

Conrad Beighton and David Griffiths of Leonard Curtis Business Rescue and Recovery, Birmingham, have been appointed as joint administrators.

The administrators, who were appointed on Friday, said: “The company had encountered continuous, ongoing difficulties within the construction industry, as a result of the ongoing pandemic and issues associated with Brexit.

Arthur M Griffiths offices in Wolverhampton

“Current volatility in availability and prices of construction materials made the completion of existing contracts on site and any new contracts in the near future unprofitable and therefore unviable. Ongoing Covid risks have also further complicated matters, and caused delays in completion of projects.

“On appointment, 44 employees were made redundant, and the joint administrators are assisting former staff with claiming their entitlements.

“The joint administrators are now taking steps for an orderly wind-down of the company and to ensure that maximum realisations are achieved for the benefit of creditors.”

Wyre Forest Health Partnership received the news that AMG, who were in charge of our new build at Stourport, had gone into administration on Friday and says its property developer is doing everything it can to find a new building contractor to complete the project.

External works on the building are 99 per cent complete and once the new building contractor is in place it should be able to complete the works within approximately four months.

The partnership is not sure how long it will take to appoint a new contractor, but is now hoping for completion by the spring.

The 122-year-old construction company informed clients and suppliers it was ceasing trading on Friday, the same day an application to appoint an administrator was filed.

Arthur M Griffiths had revenue of £30.1 million for its last financial year to March 2020 when it made a £305,000 profit.

One of the buildings that Arthur M Griffiths was responsible for was the former headquarters of Carillion, Carillion House in Salop Street, Wolverhampton.

From 2019 it constructed the new £5 million Severn Hospice building at Bicton Heath, Shrewsbury, which was completed in January this year.

It had a full order book at the start of its 2020-2021 financial year and directors said it was not in the position of requiring to secure new work in the early months of the due to Brexit.

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