UK electrical company collapses into administration - in business since 1960s

More than 100 workers have lost their jobs as a Nantwich engineering firm collapsed into administration. Gilks, based in Nantwich, Cheshire, had to close down due to "financial pressures and wider sector challenges", administrator FRP confirmed.

Martyn Rickels and Simon Farr, both of FRP Advisory Trading Limited, were appointed as administrators on February 18.

In business for over 60 years, the company has provided electrical and mechanical services with in-house design and maintenance packages. The business was contracted to work on NHS sites, schools, care homes aas well as military bases.

Its website states: "Where others may look for shortcuts, we pride ourselves on using our experience to come up with innovative solutions and sensible approaches, that maintain high standards and deal with problems more effectively."

Joint administrator Martyn Rickels said it was not possible to save the company despite efforts to find investment or alternative funding and explore restructuring options. He confirmed that the firm ceased trading and 105 people lost their jobs, according to the BBC.

He said: "The company operated within a sector that has faced increasing cost pressures and challenging market conditions in recent years.

"Regrettably, despite exploring all options, it was not possible to secure a viable future for the business."

He added Gilks' immediate priority was to support employees with their redundancy claims and to ensure an "orderly wind-down of the company's affairs".

Employees say they were first alerted to the firm's financial difficulties during a Microsoft Teams meeting.

Gilks reported turnover of about £11 million last year, a significant fall from £15 million the previous year.

The firm is owned by Ethikos Group, a Deeside-based acquirer of engineering companies, which bought the Nantwich contractor in 2020, Construction Enquirer reported.

The collapse comes amid mounting strain across the UK construction industry. Contractors have been grappling with rising material and labour costs, tighter margins, delayed projects and ongoing economic uncertainty, leaving many businesses vulnerable.