Over 130 Staff safe after Acorn Scaffolding (Yorkshire) Ltd calls in administrators.
The North Yorkshire based specialists Acorn, provided scaffolding services to housebuilders and the events sector. Past projects included the awarding-winning ‘Steel Yard‘ structure used at Creamfields.
Howard Smith and David Costley-Wood from KPMG’s Restructuring practice were appointed as joint administrators to Acorn Scaffolding (Yorkshire) Ltd on 2 December 2019.
According to a statement seen by ScaffMag, Acorn had absorbed the impact of several key customers’ entering administration, the company was unable to withstand cash flow pressures resulting in insufficient working capital to trade through the quieter winter season.
As a result the company’s directors took the necessary steps to place the company into administration.
Upon their appointment, the administrators concluded a sale of the business and the majority of its assets to Acorn Construction (Yorkshire) Ltd, a connected party.
As a result of this transaction, a total of 132 employees were transferred to the purchaser under TUPE regulations.
Howard Smith, associate partner at KPMG and joint administrator, said: “The company’s directors explored all avenues before reluctantly placing the business into administration. However, the sale secures a future for the business in Yorkshire and saves jobs in the region.”