Builders' Merchants News

GAJ Group collapses

Published:  03 February, 2011

COVENTRY: West Midlands-based construction firm, GAJ Group, has ceased trading.

Risk management specialist RSM Tenon is carrying out the administrations for GAJ (Holdings), GAJ Construction and GAJ Planned & Reactive Maintenance which had collective turnover £18.5m in 2009.

Bev Marsh, director at RSM Tenon, said: "The group's situation has been caused by a combination of factors. Not only has the economic downturn spelled disaster for a number of regional and national firms in the construction sector, but with public spending cuts GAJ had suffered from the reducing numbers of tenders in the market.

"What we are seeing in the construction sector is the result of a ripple effect right across the supply chain. When a large company fails, the knock-on effect can be devastating as it can filter right through the whole industry – it is not uncommon for failures of businesses four or five levels removed from a large failure to occur 12 months or more later on."