Sean Moran, restructuring and insolvency expert at law firm, Shakespeare Martineau, said:

“J Tomlinson is a longstanding and high profile operator in the Midlands and beyond, and news of its demise is unfortunate, if not unsurprising given current trends in the industry. The appointment of administrators clearly reflects the ongoing challenges faced by the construction industry, including increased costs of raw materials and inflationary pressures. As a result, cashflow is squeezed, making it difficult to return profit on contracts where prices were fixed some time ago and some businesses are quite literally running out of money.

“Whilst filing a notice of intention to appoint administrators creates a difficult and worrying situation for employees and their families, it may provide some breathing space while alternative options for the company are explored. This may mean that all or part of the business could be saved, although it is clearly too early to speculate.

“In any event, the administration will undoubtedly have a domino effect on the local construction industry in the East Midlands. J Tomlinson’s sub-contractors and suppliers are likely to be adversely affected, and customers may have to appoint new contractors with any work undertaken almost certainly suspended following the appointment of administrators.”

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