An award-winning North East building company has closed its doors after entering administration, leading to job losses in the area.
JD Joinery & Building Services had been known for its work building energy efficient homes in the North East, but was forced to shut down after it suffered from cash flow issues.
The company’s managing director, Joe Dixon, said that the business had been forced to close after a number of clients failed to pay their bills on time.
Joe Dixon, managing director of JD Joinery & Building Services, said: “It is down to bad debt.
“I have been done for about £220,000. It’s purely down to bad debt and people not paying the bills.”
Figures from JD Joinery & Building Services Limited’s most recent financial accounts show a large increase in the amount the firm owed to its creditors. In 2018 the firm was due to pay its creditors £997,892 within a year, compared to a figure of just £388,485 during 2017.
In comparison JD Joinery was owed £653,940 from its debtors at the end of 2018.
The business, which traded from its office at Atley Business Park in Cramlington, appointed administrators on December 3. Michael Chamberlain, from business recovery firm Chamberlain & Co, was appointed as the firm’s administrator.
Mr Dixon added that the company had also been hit by “the Brexit wobble”, which ultimately led to jobs being lost at the company.
Mr Dixon would not say how many members of staff made redundant but added that a number of workers had transitioned over to another housebuilding business he owns.
In 2015 JD Joinery & Building Services won national recognition when it was nominated for an award for its work building homes in rural Northumberland.
Its most high profile project saw it build one of the country’s lowest energy homes at Steel Farm at Whitfield, near Hexham.
The contract led to the company being nominated for the UK’s Master Builder of the Year award and winning the company the Northern Counties Energy Efficient Project of the Year prize.
