Hopes fade for workers as Newcastle building firm crashes

Jun 29 2009 by Peter McCusker, The Journal

ADMINISTRATORS of plumbing and electrical firm Simpson & Gregg say they have little hope of selling the business, which collapsed with the loss of 92 jobs.

The Newcastle-based firm, which had been in operation for 61 years, was placed into administration due to “cashflow difficulties”.

Administrator Joseph P McLean, of Grant Thornton’s Newcastle office, said: “It’s unlikely we will be able to sell the business. The company had run into cashflow difficulties and has been unable to purchase materials to complete some of its contracts.

“Much of its work was in short and medium term contracts and, as it became apparent it was having difficulties, some of these contracts were terminated.”

Simpson & Gregg was a major contractor in the new housebuild market, which has suffered from a dramatic decline in activity in the recession in the last year.

The Benton firm was set up in 1958 by Joseph Gregg and Tommy Simpson and grew into one of the region’s largest plumbing, heating and electrical concerns.

Last May mother and son team Mary and Peter Gregg sold the business for a seven-figure sum to an investment team led by the company’s managing director Colin Reed. At the time of the sale it employed 120 staff.