NatWest-backed Avonside said to have collapsed into insolvency proceedings

Hundreds of jobs have reportedly been put at risk as Avonside Group - a roofing services company backed by NatWest - has collapsed into insolvency proceedings.

According to Sky News, Manchester-based Avonside is expected to formally appoint liquidators on Tuesday after attempts to find a rescue buyer failed.

Avonside employs 450 people on a full-time basis, with a further 1,200 contract labourers on its books.

Restructuring firm Begbies Traynor had been seeking to complete a takeover of Avonside last week, Sky said, adding that people close to the process said parts of the group could yet be sold, salvaging an undisclosed number of jobs.

NatWest is said to have lent £12m to the company.

Sky cited insiders as saying that NatWest had rejected a proposal from Core Capital, its private equity shareholder, to inject new funding into Avonside, leaving its directors with no choice but to appoint administrators.

It was understood that NatWest reckons it is likely to recover more of its loan through an insolvency process, although a person close to the bank insisted it was a "director-led process".

As well as roofing, Avonside installs plumbing, heating and solar power on behalf of leading housebuilders such as Taylor Wimpey. The company’s biggest shareholder is Tony Burke, its executive chairman, although he is said to have fallen out with other investors in recent months.