Caldwell Construction Looks for Restructuring Rescue from Liquidation

Civil engineering and groundwork firm, Caldwell Construction Limited, has gone into administration.

The Stoke and Warrington headquartered company supplies housing developers for pre-construction housing site services. The company, founded in 2007, employs approximately 400 people.

Increasing material and labour costs, the housing slowdown and lack of expected housebuilding combined with the completion of fixed price legacy contracts are thought to have contributed to the business’s financial difficulties.

In its latest accounts for its year ending 31 March 2025, the company reported a post-tax loss of £300,328 with a turnover of £58.4 million and gross profit of £6.3 million.

Caldwell Construction Looks for Restructuring

Nick Stockley, partner at law firm Mayo Wynne Baxter says there is a chance the company could be rescued and restructured, but there will likely be a negative impact on the supply chain nevertheless.

The process of administration gives the company protection from immediate legal action whilst the administrators consider how the business can be restructured.

Restructuring could involve either a significant downsizing restructure as well as a sale of the company’s assets.

Nick Stockley, partner at Mayo Wynne Baxter, said: “As Caldwell Construction Limited has gone into administration, there will be a better chance of either rescuing the company as a going concern or providing a better return to creditors than if the company went into liquidation.

“In a situation like this the administrators will see if there is some chance that the company can be rescued. As the company is making an annual revenue of £58.4m there appears to be a viable business there.

“However, the company may be suffering from a significant cashflow difficulties which leave it “unable to pay their costs as they fall due”.

“Regardless of what rescue measures are considered, jobs will inevitably be lost and creditors will not be paid, that will have a negative impact up and down the supply chain.

“The company’s directors will have appointed administrators to protect themselves from personal liability. They have also given themselves the chance of setting up a new company which can take on existing contracts and, where possible, limit the damage to the supply chain.”

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