Dawnus went down owing supply chain more than £40m

Grant Prior 3 months ago
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Suppliers and subcontractors have been left with more than £40m in unpaid bills following the collapse of Dawnus.

Details of the Welsh contracting giant’s demise have been confirmed in an administrators report from Grant Thornton.

Trade creditors are owed £40.4m with former employees owed £5m and HMRC £3.1m.

Grant Thornton said “it is highly unlikely there will be sufficient funds to enable a distribution to unsecured creditors.”

The accountant was first called in by Dawnus in December 2017 as it ran into cash slow problems which were eased by a £7m funding injection from HSBC and the Welsh Government in March 2018.

But worsening trading conditions saw Dawnus seek a buyer by December 2018 with 52 potential trade buyers and 23 distressed investors approached.

But only a single offer came forward which was subsequently withdrawn following due diligence and the company went into administration in March.

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