Pettifer Construction in administration after bank pulls credit

Pettifer Construction has applied for administration after its bank pulled credit lines.

The £50m-turnover group is based in Warwickshire.

Parent company Pettifer Group, which employs 270 people, will also apply for administration, according to a company statement.

A source close to the 53-year-old company said: “The banks are the banks. There has been a short-term cash flow problem but the company still has some very good clients and a strong order book.”

It is understood that the firm's problems were compounded by the fact that its sole banker was RBS, which has experienced problems of its own in recent months.

Brian Pettifer, chairman and chief executive of Pettifer Group, said: ““The new management team of Pettifer Construction led by Chris Pape made great strides in resolving past issues and had generated a robust pipeline of new contracts starting in the new year; however, regrettably funding could not be secured to fund our short-term cash requirement.”

The move does not affect the Pettifer Investments property arm of the business and the company is trying to strike a deal to sell its consultancy business PCM.

The administrator is KPMG.