A CREDITOR of building group Bowen Construction’s British subsidiary, Bowen plc, is seeking to have it wound up over a reported £200,000 debt. Bowen plc has suspended all operations there since last week.
Bowen is one of the biggest players in the Irish building industry and runs a substantial British business through its London-based subsidiary, Bowen plc.
The British company suspended its operations last week and told its 29 staff not to report for work on May 19th.
At the same time, a creditor, Duffy Contracting Services, filed a petition with the companies court in London to have Bowen plc wound up over an unpaid debt.
It is not known how much Bowen plc owes to Duffy Contracting Services, but some sources say the figure is between £200,000 and £270,000.
Bowen plc said yesterday it is dealing with some trading issues that have resulted in a decision to suspend activities while the company works with its advisers to agree the best way forward.
“This has resulted in staff being asked not to report for work,” the company added.
It pledged to provide further clarification on the situation as soon as possible.
The company recently hired advisers to work on a restructuring programme for the business.
Bowen plc staff are understood to be critical of the way the company has handled the current situation and argue it has handled communications with workers poorly.
The petition to wind up the business relates only to Bowen plc, and not to the group’s Irish operations, which are continuing to trade as normal.
According to unconfirmed reports, Bowen plc’s problems are partly rooted in the fact that at least one of its clients has failed to pay the company on time, or in full, for work it has completed.
According to the most recent figures, Bowen plc made a profit of £111,599 on a turnover of £22.3 million in 2009.
The company works mainly on mid-sized contracts in London and south-east England.
In recent years it completed work on a substantial office block close to the Old Bailey in central London, and on the Syon Park Hotel, a high-profile property near Kew Gardens.
Duffy Contracting Services is part of the Duffy construction group, which is headquartered in Middlesex. The contracting services arm provides personnel hire and logistics to its clients.
