Pochin’s collapse hits subcontractors for £9m

Aaron Morby 2 months ago

Subcontractors and suppliers to the construction arm of collapsed Pochin’s Group will be left £8.9m out of pocket.

Pochin's former directors (l-r)Jim and Bob Nicholson

Most of the Pochin’s Group was placed into administration early last August with the loss of over 120 jobs.

Administrators from Grant Thornton have now set out what is owed to unsecured creditors of the main Pochin Construction business.

Among those firms taking hits are Lancashire-based CS Civils and Groundworks, Staffs-based Carter Electrical Services and JP M&E Services, as well as Liverpool-based HE Simm.

The Cheshire building and property group’s management blamed four problematic multi-storey residential contracts with one developer for tipping the whole £60m turnover business over the edge.

All four contracts suffered from design issues leading to significant delays.

The situation was then worsened by supply chain failure and shortfalls in the recovery of cash owed, leading to losses across the quartet of contracts totalling at least £17m.

Facing a growing cash flow crisis the management started to implement a cost-cutting plan and offload commercial properties.

A month before Pochin’s collapse family directors Jim and Bob Nicholson injected £1.5m to provide working capital.

Despite market interest in several properties, the firm ran out of time and cash failing to secure sales before the appointment of administrators.

Grant Thornton said it was pursuing £13.4m owed on seven contracts in progress at the time of administration and two claims on contracts, but only £900,000 was likely to be recovered.

But with £89m owed to total unsecured creditors – including intercompany debt of over £11m, pension shortfall of £25m and non-performance claims of £18m,  firms owed money are expected to receive less than half a pence in the pound.

Latest news

Multiplex set for massive Elephant & Castle win

Contractor tipped to beat off competition from Mace for one of year's biggest building awards
2 days ago

Opinion: Now time for Boris to prove his worth

Prime Minister must stick to his promises as Labour needs a radical rethink
2 days ago

Graham to start £130m York Uni student scheme

Deal finalised on 1,480-bed student scheme
2 days ago

132 jobs saved as collapsed scaffolder Acorn pre-packed

Former directors of Acorn Scaffolding (Yorkshire) buy assets for £110,000
2 days ago

Balfour Beatty creates new technology chief role

Chris Johnson promoted to new strategic role reporting directly to Leo Quinn
2 days ago

Eutopia Homes advances debut £105m Salford scheme

Former Essential Living boss lodges plans for first of three schemes worth £365m
2 days ago

Thirteen Housing Group seeks two firms for £100m spend

Work involves maintenance to complex and high-rise housing blocks
2 days ago

Costain profits slashed after road row ruling

Profit forecasts halved following legal U-turn over Welsh road dispute
3 days ago

Balfour Beatty to exceed 2019 profit forecast

US probe into falsification of maintenance records extended to all 21 US air force bases
3 days ago

40 jobs axed as Leeds firm RDF Building collapses

Third east coast contractor sinks in less than 10 days
3 days ago

Dramatic crane collapse video shows site damage

Footage reveals aftermath of Kingston crane failure
3 days ago

Plans submitted for London ‘hanging gardens’ tower

36-storey 50 Fenchurch Street tower will feature huge green wall
3 days ago

Balfour gets go-ahead to restart Midland Met hospital

£267m contract award to restart job hit by Carillion collapse and funding wrangles
4 days ago

Vinci clinches Staffordshire Uni £40m skills hub

Work will start this spring on the Catalyst building in Stoke on Trent
3 days ago

McAlpine wins November contracts league race

BAM stakes claim as new favourite to be crowned 2019's greatest work winner
4 days ago

Tower crane in London collapses in high winds

Jib snaps on residential site in Kingston
4 days ago

Costain offloads Spanish golf courses for a loss

Costain to book £8.9m loss from sale of golf course and marina
4 days ago

Yorkshire Water names final AMP7 framework winners

Nine firms to share £650m clean and waste pipe spend
4 days ago

Balfour Beatty extolled as Britain’s most admired contractor

Business chiefs judge major contractors to find most admired firms
4 days ago

Amey chief executive Andy Milner exits

Amanda Fisher, MD of FM business, takes role of acting CEO
5 days ago

London council starts £520m housing upkeep contest

Lambeth to overhaul housing maintenance with new contractor line-up
4 days ago

£340m northern new-build framework winners

Six firms secure affordable housing major project lot in Yorkshire and Humberside region
5 days ago

Bad weather bogs down construction output

Construction suffers biggest monthly output fall for nearly two years
5 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

86 jobs cut as North East civils firm goes under

Joyce Construction & Civils is latest casualty of tightening market
6 days ago

Sewer breach sweeps away three workers on Tideway site

Court fines Thames Water Utilities £300,000 after Greenwich accident
5 days ago

Plans lodged for £30m Teesside indoor ski centre

Three-storey complex to be built at Middlesbrough Dock in Middlehaven
5 days ago

Willmott Dixon wins £18m historic London school rebuild

Historic St Dunstan’s College Lewisham site tol be redeveloped
5 days ago

Train narrowly misses trapped concrete mixer on crossing

Amey site staff beckoned truck onto crossing as warning lights flashed
5 days ago

Plans for Manchester Metropolitan Institute of Sport

Eric Wright has drawn up demolition and construction management plans
6 days ago

Contractor services