The companies were hit by inflation, Building Safety Act delays, constrained insurance markets and historical claims from ISG’s administrations.
FK Group’s Facade and Construction firms have collapsed (Image: Getty)
A building envelope specialist’s two main businesses have fallen into administration. FK Group’s Facade and Construction firms have collapsed, and as a result of the administration process, 40 jobs were lost, the Construction Enquirer reported. FK Group is the UK’s full building envelope contractor, headquartered near Manchester. It specialises in roofing, cladding, glazing and maintenance across multiple sectors.
According to the publication, the companies were hit by prolonged industry pressures, including factors such as inflation, constrained insurance markets, historical claims from ISG’s administrations and Building Safety Act (BSA) delays. These stem from the Building Safety Regulator (BSR) struggling to process high-risk building applications. In December, a cross-party House of Lords Committee warned the Government that “unacceptable” delays caused by the BSR’s approval processes are leaving residents waiting for remediation of dangerous cladding in unsafe buildings and increasing costs for leaseholders.
FK Group headquarters in Altrincham near Manchester (Image: Google Maps)
The collapse of these businesses slammed hard the group’s two largest projects at Multiplex’s Elephant and Castle in London and Sisk’s Manchester City Stadium, where contracts were said to be getting closer to completion.
The group announced earlier this week that its two remaining solvent operations – the Premo manufacturing division and the FK branch – will continue trading unaffected by the administration.
It said the business would now operate with a reduced footprint and a sharper focus on façade delivery, design, manufacturing and remediation services.
The company added that it would work with a narrower, project-led client base, prioritising longer-term relationships.
A spokesperson said: “This restructure gives us a simpler, more resilient platform. We are now focused on the areas where we add the most value, with a clear operating plan and a stable base for the future.”
FK Group’s remaining team is aiming to deliver five projects for clients McLaren Construction and Domis in Manchester and London.
FK Group’s last published accounts highlighted the firm turned over around £100 million last year, however, the yield for this year fell to £40 million.
