‘Cash flow challenges’ threatens to send Edwinstowe-based construction firm into liquidation

Robert Woodhead, an Edwindstowe-based contractor, which worked across the East Midlands and South Yorkshire, has confirmed it has ceased trading, resulting in the majority of its staff losing their jobs.

Accountancy firm RSM UK Restructuring Advisory has been appointed to the firm, with a view to placing the company into voluntary liquidation.

The firm stated the impact of increasing prices throughout the supply chain and fixed price contracts as being the root cause of the decision.

Teresa Westwood, Robert Woodhead managing director, said: “The directors are devastated at having to make this decision.

“Having worked tirelessly to mitigate these issues over recent months, ultimately the business faced a range of cash flow challenges in recent weeks that proved insurmountable and concluded that the company could not continue trading.”

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Last week a number of employees took to LinkedIn to say they were looking for new jobs, with one stating: “It’s a shame to say we all received the terrible news about our positions at Robert Woodhead late yesterday, meaning I now need to look for a new opportunity.”

A document seen by your Chad revealed employees were sent an email on Wednesday, September 14, saying directors had decided the firm could ‘no longer continue to trade’ and that the employments were being terminated with ‘immediate effect’.

About 120 staff members are believed to have been affected.

Mark Spencer, MP for Sherwood, said: “It is devastating to hear Robert Woodhead is going into voluntary liquidation, causing many people to lose their jobs.

"I shall be writing to RSM, who I am told are handling the liquidation, to remind them of their obligations to the workforce.”

Robert Woodhead had partnered with a number of local authorities on housing schemes in the region, including Bassetlaw, Newark & Sherwood, Bolsover, and Mansfield councils.

The latest accounts for Robert Woodhead Holdings, for the year to October 31, 2021, show a pre-tax profit of £535,000 from a turnover of £44.3 million, with the company employing more than 150 staff.