The Danish construction company behind the new Cowes Enterprise College, Pihl, has made the decision to file for bankruptcy, blaming cost overruns on several projects.
The project to build a new site for the Cowes secondary school has been plagued with delays, increased costs and what was eventually considered, the incorrect suspension of council officers.
Unexpected costs for post-completion work on several projects led to the move announced by Pihl on Monday (26th August).
The Pihl statement reads,
“The expansion took place without sufficient balance in the contract terms and without having sufficiently verified the credit quality of the foreign customers and sub-contractors, and without making sure that the qualities of the work processes and the risk management procedures were sufficient to support the increase in activity.”
It goes on to say,
”Today the board of directors of E. Pihl & Søn A.S. had to make the painful decision to file for bankruptcy, after all attempts to find a financial solution to secure the continued operation of the company had proved to be in vain.”
Thanks to OnTheWight reader John Marr for the headsup.
