Loweth Ltd in receivership

Romford-based Loweth Ltd went into receivership earlier this week with debts of up to £6m.

Nick Hood and Paul Davis, partners at Begbies Traynor, were appointed late on Wednesday (12 May) as administrators for the refurbishment and maintenance firm. Loweth's clients included Crown Estates, Barclays, HBOS, the Royal Bank of Scotland and a number of pub chains.

Hood and Davis are already in talks with three "major players" to sell the business.

Loweth was established in 1882 and employed 200-plus staff. Turnover last year is estimated to have dropped to £16m from £20m in 2002 while the firm was incurring monthly losses of £50,000.

Hood said: "This is a tragedy for a long-established name in the construction sector, and of course for its staff and directors. Loweth is just the latest victim of the ferocious price-competition which exists in construction.

"Efforts last year to find a buyer were frustrated by several factors, not the least of which is the issue of TUPE. Unfortunately, there are very few companies willing to take on the employment liabilities of such a large number of people, when margins are slim and the commercial risks are so high."