One of Wales’ oldest construction and property development firms, Jehu, has formally gone into administration. Last month the Bridgend-based business, run and owned by the Jehu family and which dates back four generations to the 1930s, announced its intention to enter administration in a move that resulted in 103 staff being made redundant with immediate effect.
Now formal administration procedures have commenced for Jehu Group, Jehu Project Services and Waterstone Homes. Huw Powell, Katrina Orum and Paul Wood of insolvency firm Begbies are joint administrators. It is not yet clear what creditors, if anything, will get back from the sale of assets.
The directors of Jehu Civils, Waterstone Estates and Abode Waterstone are currently collating information and seeking advice from Begbies Traynor. It is anticipated that these companies will take steps to proceed to creditors’ voluntary liquidation. No other group companies are currently proposed to enter any form of insolvency.
Jehu said its financial position had been adversely impacted by entering into fixed-price construction contracts prior to the pandemic with profit margins subsequently wiped out by high construction sector inflationary pressure.
Jehu was delivering construction and development projects for housing associations and local authorities in Wales and the south west of England. Jehu Project Services had 15 live contracts with a total remaining value in excess of £100m.
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Whilst clients affected should be able to find other contractors to complete outstanding Jehu construction work, they are faced with having to pay more compared to agreements struck with the Bridgend-based firm.
The directors of Jehu Civils, Waterstone Estates and Abode Waterstone are currently collating information and seeking advice from Begbies Traynor. It is anticipated that these companies will take steps to proceed to creditors’ voluntary liquidation in the coming days.
At the time of Jehu confirming its intention to go into administration Jehu Group directors, Marc and Simon Jehu, said; "This is a truly devastating day for the business started by our grandfather over 85 years ago. Every possible option to keep the business alive has been completely exhausted and it with desolate hearts that we find ourselves with no choice but to cease trading. We did everything possible to avoid closure, but we were fighting a battle that simply couldn’t be won due to the successive economic shocks of the past couple of years.
“Our thoughts are first and foremost with our devoted colleagues who have lost their jobs, many of whom have given more than 25 years of service. We would like to thank the loyal and steadfast clients and supply chain who supported us, often carrying the added burden of those who sought to capitalise on our difficulties."
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