In a devastating blow to the local economy, Caldwell Construction Limited, a prominent groundworks and civil engineering firm based in Stoke-on-Trent, has been placed into administration, putting more than 400 jobs at risk.
The construction company, which also has an office in Warrington, Cheshire, has fallen victim to the challenging trading conditions that have plagued the industry in recent years. According to Paul Smith, a partner at the administrating firm PKF Littlejohn Advisory, issues such as cost increases, project delays, and market uncertainty have all contributed to Caldwell’s downfall.
“The pressures were exacerbated at Caldwell in recent weeks, placing significant strain on cashflow and operations,” Smith explained. “Despite working with the firm’s management for some time to explore different options, we were unable to find a viable solution.”
The news comes as a major setback for the local community, with Caldwell Construction being a long-standing sponsor of the South Stand at Stoke City FC’s Bet365 Stadium since 2019. The company, founded in 2007, had been a fixture in the region’s construction landscape for over a decade.
Joint administrator Oliver Collinge has stated that the immediate focus is on supporting the affected employees and stakeholders while assessing the business’s position and assets. “Our immediate focus is now on supporting employees and stakeholders while we assess the position of the business and its assets,” Collinge said.
The collapse of Caldwell Construction is yet another blow to the construction sector, which has been contracting at the fastest pace since the pandemic, according to recent industry surveys. The news has sparked concerns about the broader health of the industry and the potential ripple effects on the local economy.
As the administrators work to determine the next steps, the fate of the 400 jobs and the future of Caldwell Construction remains uncertain. This development serves as a stark reminder of the challenges facing the construction industry and the need for comprehensive support to ensure the sector’s resilience and recovery.
