Connaught buys Botes, but HN Edwards is now in administration

Connaught has bought the assets of Botes Building from the administrator, Kroll, for £3.2m. However, Botes sister firm HN Edwards is now in administration.

Botes Building is essentially the Botes Maintenance business that was sold a fortnight ago to a shell company owned by Epic Reconstruction, a majority shareholder of Botes. However, under Insolvency Act rules, other interested parties had until 3 July to counterbid. Connaught chairman Mark Tincknell told Contract Journal that he took a look at the business last Wednesday (28 June).

The 220 staff will all transfer to Connaught, including the management. Tincknell said: “It’s got a good management team, headed by managing director Gary Dobson. We’ve got a team of eight Connaught staff in there at the moment to ease the changeover.

“[Ultimately] the business will be run by our South East region managing director Tim Hancock. It will be rebranded Connaught as soon as is practical.

“This is a platform for the development of our responsive maintenance business in the South East.”

He noted there are no long-term liabilities in Botes Building’s pension fund, “otherwise we wouldn’t have bought it”.

Where possible, Connaught will try to use existing Botes subcontractors on the 10 live projects it has acquired.

Meanwhile, a group of Botes creditors will ask the Department of Trade & Industry to investigate the company’s collapse.

The five firms, who at this stage wish to remain anonymous, are also writing to their local MPs, asking that they back their demands for an investigation.

Furthermore, Mike Wilderink, managing director of The Outdoor Deck Company (which is owed £45,000 following the collapse) is considering suing the original directors.

HN Edwards went into administration on 30 June due "unprofitable trading contracts, which led to cash flow difficulties". Kroll is the administrator. Edwards undertakes building contracts from offices in Basingstoke, Hampshire and Witney, Oxfordshire, and employs 127 staff. Its turnover runs to £33m.

The administrators are in talks with a number of interested parties about selling the business.