Hallam collapse highlights the need to know your clients

Creditors of the collapsed Leicestershire construction firm JH Hallam (Contracts) Ltd are now looking to reclaim any amounts owed while the company is in administration. Administrators of the Oadby-based firm, which employs over 100 people throughout the East Midlands, are working to save jobs and reassign existing contracts – a task the company’s directors areRead More

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-Alan Cleaver, creative commons

Creditors of the collapsed Leicestershire construction firm JH Hallam (Contracts) Ltd are now looking to reclaim any amounts owed while the company is in administration.

Administrators of the Oadby-based firm, which employs over 100 people throughout the East Midlands, are working to save jobs and reassign existing contracts – a task the company’s directors are helping them with.

According to reports, a winding-up petition was submitted by a Hallam Contracts sub-contractor for an unpaid invoice amounting to around £500,000.

But the full outstanding debt owed by the company may be closer to the £4 million mark, with as many as 300 suppliers among its creditors.

Administrators at Begbies Traynor have now been appointed to handle the process, including John Kelly, a partner in Begbies’ Birmingham office, and John Lowe of its Leicester office.

Mr Lowe says: “The directors very much regret the action they have had to take but, following a petition presented against the company, felt they had no other options.”

He adds that bad debts, poor margins and disputed accounts all contributed to the demise of the 90-year-old, award-winning firm.

Hallam had been an established business for over 90 years and their collapse has proven just how important it is to make sure you know what’s happening with your client’s business.

Having a credit check performed on your clients every six months will help to avoid any unexpected financial pit falls and provide you with peace of mind.

Cash Protection Agency Ltd offer a comprehensive credit checking service providing clients with information that enables them to make informed trading decisions.

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