A Liverpool-based construction firm has entered liquidation owing more than £3.6m to its creditors just weeks after its sister company also collapsed.
Following a court hearing this morning, Crossfield Living is now in creditors’ voluntary liquidation.
The business was established in 2017 as a sister company to Crossfield Construction. Both companies were part of Crossfield Group.
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It was revealed in April that Crossfield Construction was set to be dissolved having racked up debts of £5.9m.
Jason Greenhalgh and Paul Stanley of Begbies Traynor have now been appointed as joint liquidators of Crossfield Living.
Crossfield Living ceased to trade on April 29 after it "faced significant financial pressure", Begbies Traynor said.
It added that "Covid restrictions, the soaring price of raw materials and the loss of key contracts were some of the key factors in its demise".
According to a Begbies Traynor document seen by BusinessLive, Crossfield Living owes more than £3.6m to its creditors.
That includes £1m to London-based funder Daniel Moretti and £623,000 to NatWest.
Jason Greenhalgh, partner at Begbies Traynor in Liverpool, said: "Today, we can confirm our appointment as joint liquidators of Crossfield Living Limited.
"We are contacting all known creditors to outline what this means, what the next steps are and we will be fulfilling our statutory duties over the coming days, weeks and months.
"The company has faced financial challenges in recent times with rising costs, loss of contracts and Covid restrictions being some of the reasons."
