Accountancy group Vantis, which is handling the collapse of Southampton builder, suspends shares after chief exec resigns
In a bizarre twist, the administrator handling the collapse of Southampton-based builders Laishley Limited has run into trouble itself.
Laishley was placed in administration earlier this month, reportedly owing 拢11.8m and leaving many of its subcontractors out of pocket.
But AIM listed accountancy group Vantis, which was appointed adminstrator, had its shares suspended earlier this week after the company said it could 鈥渘o longer be certain that it will continue to trade on a going concern basis鈥�.
Vantis has debts or around 拢40m. The shares were suspended on Monday after the chief executive and a director in charge of its business recovery division resigned at the weekend.
Vantis said its difficulties would not impact on any of its clients.
Laishley operated within the commercial, community, education, residential, health and sports and leisure sectors, specialising in restorations and refurbishment.
It is unclear how much money creditors will be able to recover.
In a statement Vantis said: 鈥淟aishley Limited has been affected by a number of culminating factors including the loss on a recent contract which has led to significant cash flow difficulties.
鈥淎dverse weather conditions in December 2009 and January 2010 also meant that sites had long periods of inactivity, leading to time and cost overruns. Furthermore, the general unfavourable economic climate has lead to a reduction in new work and delays in contracts being awarded.鈥�
The administrators do not expect to sell the business.
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