Around 80 jobs lost as County Durham's PSP Group falls into administration

PSP Group companies have been placed into administration
-Credit: (Image: Google Streetview)


More than 80 jobs have been lost following the collapse of a North East architectural engineering group.

Administrators were called in to Shildon-based PSP Group, which has immediately ceased trading following reported difficulties in the last few months. The group, which includes PSP Architectural Ltd, PSP Aluminium Ltd and Pressed Steel Products Limited, has delivered design and engineering works on schemes across the country including prominent developments such as the striking Victoria Gate John Lewis store in Leeds and the Newhams Yard scheme on London's Tower Bridge Road.

Interpath's James Lumb and James Clark, who were appointed joint administrators of all the companies, are now looking for buyers for the architectural and aluminium businesses, which had employed 64 and 20 staff respectively, and supplied construction clients with facades, cladding, door and window frames made principally from aluminium.

READ MORE:Fatman Scoop's cause of death confirmed after US rapper collapses on stage

READ MORE:Shoppers bag 'lightning fast' Russell Hobbs cordless kettle for £22 on Amazon

PSP was said to have experienced trading difficulties in the last few months following poor sales in 2024, which had led to cashflow and liquidity issues. In spring, the group's directors had secured temporary funding to see them through to a forecasted rise in sales which ultimately did not materialise.

The administration comes only four years after PSP received an undisclosed bank funding package to expand - which had encompassed plans for a new production line. At the time, the group signalled it was on target to reach £8m turnover with more growth on the horizon and funder Barclays tipped its "exciting pipeline".

The insolvency experts at Interpath pointed to well publicised, widespread problems in the construction sector, which in recent weeks has seen the demise of national contractor ISG and Hull offsite specialist ESS Modular.

James Lumb, managing director at Interpath and joint administrator of the companies, said: “The challenges facing the construction sector in the UK are widespread. In particular, we are seeing issues in building products where - even with positive sentiment in end user markets such as housing around government policy and reducing interest rates - there is a long lag to sales. That is exactly what happened with PSP; the business had invested heavily in state-of-the-art equipment and IT solutions but was unable to withstand soft demand in the short term.

“We are seeking buyers for the business and any interested parties should contact us as soon as possible. In the meantime, regrettably, the business couldn’t continue trading and redundancies were made. We have a team supporting employees impacted by the appointment and will work with them to make representations to the Redundancy Payments Services.”

Pressed Steel Products was the property holding company of the group's two freehold properties on All Saints Industrial Estate in Shildon.