Haydon Mechanical and Electrical files for administration

696
Composition with tools and electrical equipment on black table and industrial ship background. Horizontal composition. Front view, representing Haydon Mechanical and Electrical filing for administration
@Davizro | iStock

Ten years after it was sold to the management team for £1, Haydon Mechanical & Electrical has filed for administration

London-based specialist Haydon Mechanical and Electrical have filed for administration after a creditor agreement failed to resolve cash flow issues.

The M&E firm operated across residential, commercial, healthcare and a variety of facilities management sectors for 38 years.

Recent results recorded a £66.2m turnover for the year ending December 31 2021, generating a pre-tax loss of £6.2m.

After cash flow pressures, Haydon entered a Corporate Voluntary Arrangement with creditors in August 2022, designed to return at least £7.2m to creditors starting in November 2022.

The company was already facing £7.2m of debt from its previous owner

Parent company Mears sold Haydon to its management in 2013 for £1, with an agreement to pay back £7m if the company was sold again with a loan repayment scheme in place.

Mears agreed to pause the repayment schedule for at least 18 months whilst Haydon resolved the debts of the CVA.

Editor's Picks

LEAVE A REPLY

Please enter your comment!
Please enter your name here