Osborne Construction Ltd, Osborne Group Holdings and Osborne Homes Ltd has joined Geoffrey Osborne Ltd in filing notices of administration
The Osborne Group’s administration notice was first reported last Thursday (18 April), citing a cashflow crisis.
Founded in 1966 in Chichester by Geoffrey Osborne, the various companies have been run by the Osborne family for 58 years.
In the last few years the Group has faced economic difficulties, which resulted in the sale of three of its divisions after post-pandemic business struggles.
Around 100 people have lost their jobs, with a small number of temporary staff kept on to aid the next steps
Chairman Andrew Osborne said: “This is a sad day and one we worked very hard to avoid. I’m sorry for our staff, who are the greatest strength of our business, and thank them for their work over many years.
“Appointing administrators is a last resort after a determined effort to trade through the economic headwinds and deliver for customers.
“The management team will now work with the administrators on the next steps for the business.”
Damian Webb, joint administrator, added: “Regrettably despite the substantive efforts of the Osborne team it has not been possible to rescue the business.
“This failure is attributable to the macro-economic challenges the company has faced since Covid and the consequent loss of confidence in the sector from investors and funders.”
The latest accounts for Geoffrey Osborne Ltd showed a £44m pre-tax loss and a decrease of over £225m in turnover.
The Group confirmed that staff will be paid up until administrators are formally appointed
In a statement the company said: “The decision was reached after an 18-month programme to restructure the firm to focus on the core construction business and following an extensive effort to secure new investment into the business.
“The company with its advisors are currently working with interested parties with the ambition that aspects of the business will be sold and will continue to trade. Negotiations are ongoing. To support this process all staff will be paid up to the date the administrators are appointed.
“Osborne has faced significant headwinds common to the entire construction over the past two years, fuelled by high inflation, the lingering impacts of COVID-19 and Brexit, and a slowdown in public sector procurement. Despite these challenges, Osborne has maintained strong relationships with suppliers, contractors and staff, while delivering for customers.
“To address this under-performance and protect the underlying construction business Osborne has sold its property management division, infrastructure business and offsite manufacturing arm securing the employment of over 850 jobs. The proceeds of all three sales have been reinvested into the construction business, which has continued to deliver projects in London and the southeast.
“Regrettably despite a substantive improvement in performance the residual losses on legacy projects have undermined performance which has impacted on the ability to win new work. Despite the management team ensuring the current business is profitable with a good pipeline of work the business has struggled to secure the necessary investment to continue as a going concern.”
