King's Lynn construction company set to enter liquidation

A Lynn-based construction company has gone into liquidation with debts thought to run into millions of pounds.

Dozens of workers are feared to have been laid off after Chalcroft Ltd announced the move on Wednesday.

Bosses say events within the company and the industry as a whole have led to the decision.

They insist all existing contracts will be completed, including the flagship H&M store in Lynn.

And, yesterday, H&M reiterated its commitment to the town, saying: “We want to reassure our customers that H&M will still be coming to King’s Lynn.”

However, representatives of firms who say they are owed money have warned the impact of the move is likely to be far-reaching for them and other companies.

The announcement, made on Wednesday afternoon, followed several days of growing speculation about its future.

A recorded message on phone lines to the company’s offices on Campbells Meadow said this week that it was “unable to take calls at this time”.

A statement said: "It is with deep regret that the Directors of Chalcroft Ltd confirm that the company is being placed in liquidation.

"This is as a result of a series of events within the business but moreover in the wider sector that have impacted upon our financial position and ability to operate sustainably.

"Working in liaison with our clients and sub-contractors, we can confirm that all outstanding contracts will be completed.

"The Board have appointed McTear Williams & Wood as liquidators of the company."

The statement did not indicate how many workers are affected by the announcement, although it has been suggested that up to 30 may have been laid off in recent days.

However, a document seen by the Lynn News, which is dated this week, suggests that up to 70 people were employed by the company and are owed more than £500,000 between them.

It also indicates the company had total liabilities worth more than £12 million.

Of that, nearly half, around £5.7 million, appears to be owed to what are described as “unsecured” trade creditors.

A director of one such firm, which is based in Cheshire, yesterday told the Lynn News they had been pursuing Chalcroft for unpaid monies, running into tens of thousands of pounds, since before Christmas.

They also say they have lost even more money after they took legal action to pursue the debt and claimed they had not been told Chalcroft was in trouble before they did so.

The director said: “This is a sorry state of affairs and hundreds of suppliers and staff have been hit massively on a financial scale.”

Meanwhile, a worker at a West Norfolk-based company, who asked not to be named, said his firm was also owed tens of thousands of pounds by Chalcroft.

Although the company has been the main contractor for the project, both the Vancouver Quarter shopping centre and West Norfolk Council officials said measures had been put in place to ensure continuity on site.

Workers have been on the site this week.

A Vancouver Quarter spokesman said yesterday: “In light of Chalcroft’s announcement, we would like to reassure the shoppers of King’s Lynn that measures have already been put in place to continue with the building of this important project.

“We look forward to providing further improvement to the town’s retail offer and welcoming H&M later in the spring.”

Alistair Beales, West Norfolk Council cabinet member for corporate projects and assets, said the announcement of Chalcroft’s demise was “unwelcome”.

He said: “I can confirm that the council has no direct contractual relationship with Chalcroft, but we will continue to work with our investment partners to keep the H&M project on track. This development is key for the future of the town centre.

“I understand that a number of actions have already been taken to ensure continuity on the H&M site, including varying the contract to enable direct payment of sub-contractors.

“Meetings have and will continue to take place over the following days and weeks, and officers at the council will do everything possible to support our investment partners to get this project completed.”

Meanwhile, North-West Norfolk MP Sir Henry Bellingham said he was “saddened” by the announcement, but added that he had been advised the company’s smaller projects division would continue to trade.

He said: “For many years they have been a constant presence in West Norfolk and have contributed a huge amount into the local economy.

“They can be very proud of what they have achieved, and I have spoken to their chairman, Mark Reeve, to offer my assistance and to seek reassurances.”

Sir Henry claimed Mr Reeve had expressed confidence that all those who had been made redundant would find new work.

He added the announcement showed the need to secure the future of the Construction Industry Training Board site at Bircham Newton, which is slated to be moved to Peterborough.