Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Corporate Services  New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
  • Video Insights
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / News / Construction contractor owed creditors £11m when it collapsed

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

Supplier & Installer Of Conservatory Roof Conversions
North West, UK

Supplies and installs cost-effective, lightweight and insulated conservatory roof conversions, creating year-round, useable spaces for customers throughout the North West. Works closely with customers to ensure all services meet specific requirements...

Asking Price: Offers Invited
Turnover: £658,000

LEASEHOLD


Commercial & Residential Scaffolding Business
UK Wide

Provides a comprehensive range of specialist scaffolding services, investing in new equipment and innovative technologies to strengthen and streamline operations. Holds a significant volume of scaffolding materials and a fleet of modern vehicles, wit...

Asking Price: Offers Invited
Turnover: £3,450,000

LEASEHOLD


Specialist Building Contractor
South East, UK

On instructions of the Company, an excellent opportunity exists to purchase this long-established specialist building contractor specialising in roofing, guttering, upvc cladding, fascias, etc on domestic and commercial properties.

Asking Price: Offers Invited
Turnover: £1,600,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
09
 
Apr
 

Topshop flagship store up for sale | COMMERCIAL PROPERTY

Topshop's flagship Oxford Street store in London is dra...

 
09
 
Apr
 

Gestamp’s former Washington warehouse hits the market in £6.5m auction | COMMERCIAL PROPERTY

The former Washington base of international car parts manufa...

 
08
 
Apr
 

Decorating contractor targets acquisitions after MBO | MBO/MBI

Scottish commercial decorating contractor Bell Group has com...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
28
 
Oct
 

Arlington Automotive acquired out of administration by Ricor Global | BUSINESS SALE

Arlington Automotive North East has been acquired out of adm...

 
22
 
Jul
 

Essex-based cruise line goes into administration | ADMINISTRATION

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

 
19
 
Jun
 

Living Ventures places Blackhouse and Newgate into administration | ADMINISTRATION

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

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

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news


About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2021. Business Sale Report Ltd. All rights reserved. www.business-sale.com.