Devon hospitality fit-out contractor in pre-pack acquisition
Thu, 10 Oct 2024 | ADMINISTRATION
A hospitality fit-out specialist based in Devon has been acquired out of administration in a pre-pack deal saving 60 jobs.
WFC Contractors, based in Newton Abbot, provides specialist fit-out and refurbishing services for customers in a range of hospitality sectors from hotels to bars and theatres. The company has been acquired by Cheshire-based RW Group, whose portfolio includes airplane cabin interiors specialist RW Aviation, property maintenance firm Hankinson Whittle and Curtis Painting Group, an industrial and commercial painting contractor.
Despite carrying out high-profile work such as fitting-out the Prince of Wales Theatre in London and refurbishing the capital's iconic Royal Lancaster Hotel, WFC appointed administrators Quantuma on October 8. Quantuma said WFC had recently suffered cashflow difficulties as a result of higher costs and tighter margins.
In its most recent accounts filed to Companies House for the year to December 31st, 2022, WFC said it had experienced a challenging year with inflation having an impact on the cost and delivery of projects. It also highlighted ongoing material and labour supply issues in the construction industry. As a result, its annual pre-tax profits slumped to nearly £344,000, down from £2.8 million in 2021.
WFC said the acquisition by RW was a ‘pivotal moment’ providing financial stability and an opportunity to strengthen its market share.
Steve Howle, WFC’s managing director, said: “The needs of our customers and suppliers will remain at the forefront of our priorities. We are delighted to share that our culture, values and vision for future growth are very much aligned with those of our new owners. This strong alignment ensures that our company’s core principles will remain at the heart of everything we do.”
RW Group CEO, Chris Williams added, “This strategic move marks the beginning of an exciting new chapter for WFC. The acquisition places WFC on a strengthened financial footing, ensuring the stability and liquidity needed to continue as the fit out and refurbishment contractor of choice for new and existing clients.”
Despite insolvencies remaining high, a recovery may be on the cards for the construction sector
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