Construction contractor owed creditors £11m when it collapsed

Tue, 07 Jul 2020 | BUSINESS NEWS

Lancashire-based contractor Construction Partnership UK owed close to £11 million to creditors when it collapsed in April, according to a new report from administrators Duff & Phelps. The company’s administration was blamed on the impact of coronavirus and “contractual issues” following the loss of several contracts.

This included The Rise, a £23.4 million mixed-use development in Liverpool, that led to £3 million in bad debt. The contract was due to be the firm’s biggest ever job but work stopped last year when developer Primesite Development ran into funding issues.

When work halted, Construction Partnership UK had completed work worth £7 million. At this point, Duff & Phelps says, “the company began to experience delays in payments and processing of certificates". Attempts to find a new partner to complete the contract in a joint venture failed as losses were too great.

Prior to its collapse, Construction Partnership UK had turnover of around £40 million.

According to Duff & Phelps, the firm was hit by a combination of late and missed payments, overrun on projects and increasing materials costs. These issues were exacerbated sites being forced to close due to COVID-19 lockdown. At the time of its collapse, Construction Partnership UK owed creditors £10.9 million, including debts of £9.2 million to trade creditors and £570,900 to HMRC.

All 94 staff were placed on furlough in March before being made redundant in May. Former employees have made preferential claims totalling £73,100 against the company, but Duff & Phelps say it is uncertain whether they will be paid.

The administrators said that some repayment to trade creditors was likely, but did not say how much of the £9.2 million would be paid. A £500,000 bridging loan secured in March from investment firm Anita Venetian, the firm’s only secured creditor, is likely to be repaid in full.

In this recent BSR Insight, we highlighted the difficulties afflicting companies who cannot pay their invoices and those unable to collect on payments they’re owed, specifically looking at how this is impacting the construction sector.

Find businesses for sale here.

If you are looking for an exit, we can help!

Share this article

Latest Businesses for Sale

Commercial Fit-Out & Facilities Management & Maintenance Services
UK Wide

Offers a comprehensive range of services, specialising in the project management and construction management of commercial fit-out projects. Operates from several strategically located premises in South England. Offers invited.

Asking Price: Offers Invited
Turnover: £4,201,901


Private Architectural Practice
UK Wide

Delivers commercially successful, functional and creative medium and large-scale residential developments, working closely with its clients to meet their quality, time and budgetary requirements. Utilises extensive in-house expertise to deliver dedic...

Asking Price: Offers Invited
Turnover: £1,870,000


Building & Maintenance Contractor
UK Wide

Specialises in dedicated, flexible and personal aids and adaptations for the elderly and less able, working with clients to provide tailored and high-quality solutions. Service offering is enhanced by the provision of complete general building and ma...

Asking Price: Offers Invited
Turnover: £3,000,000


View more businesses for sale

News Search

Latest News


Trafford Centre up for sale after Intu administration | COMMERCIAL PROPERTY

Manchester’s Trafford Centre shopping mall is up for s...


Administrators bring three former Shepherd Cox Group hotels to market | DIVISION SALE

Administrators have put three hotels in the North of England...


Baird Group to close stores as CVA is approved | BUSINESS NEWS

Retailer and wholesaler Baird Group, the license holder for ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide


Related News


Essex-based cruise line goes into administration | ADMINISTRATION

Cruise & Maritime Voyages (CMV) has gone into administration...


Living Ventures places Blackhouse and Newgate into administration | ADMINISTRATION

Living Ventures has placed its Blackhouse and Newgate restau...


28 Oddbins stores saved after acquisition by unnamed buyer | BUSINESS SALE

28 Oddbins stores will remain open after the off-licence ret...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources