ADMINISTRATORS have been appointed for two subsidiaries of a Yate-based construction and civil engineering group.

As reported in the Gazette last month, significant losses led to ER Hemmings (Building) Ltd and ERH Construction Ltd ceasing to trade and filing for insolvency.

Two other parts of the ERH Group, which has its headquarters in Dean Road, were not affected.

However, it has now been announced that both ERH Holdings and ERH Communications Ltd have been taken over by Bridgend-based company Centregreat.

Nigel Morrison and Alistair Wardell of accountancy firm Grant Thornton have been appointed joint administrators of ER Hemmings and

ERH Construction.

They said the future of 37 employees affected as a result of the administration was unclear as other associated companies were considering whether they could take them on.

Mr Morrison, head of regional advisory at Grant Thornton in the South West, said: “The building and construction industry has suffered considerably over the past few years and it is disappointing that, despite the efforts of the companies’ management teams, another employer has been unable to survive in this difficult economic climate.

“However, the announcement that Centregreat has taken over the remaining companies in the ERH group is very positive news indeed.”

Centregreat, an engineering and facilities management business employs some 350 staff and has a turnover of about £30 million.

Jerome Mathias, its managing director, said: “The acquisition of ERH Holdings and ERH Communications is great news for all, as the synergies between the companies will create a strong strategic alliance which will enhance our offerings to our customers and protect future employment for ERH employees.”

Centregreat has appointed Graham Morgan and Mel Mathias as new directors of the newly acquired businesses, while ERH group chairman Ernie Hemmings will leave.

In a statement, ERH said: "We now have a considerable task of reviewing the business operations and to identify and deal with those issues to ensure it is business as usual."