Killby & Gayford crashed owing £34m

Aaron Morby 9 years ago

South East builder Killby & Gayford collapsed with massive debts of £34m.

The £70m turnover builder owed trade creditors around £10m and according to administrator BDO none are likely to see any of they cash they are owed.

Laing O’Rourke’s building services contractor Crown House took the biggest hit of £270,000. Cheltenham electrical contractor CF Roberts will lose £218,000 it is owed, while Hertfordshire-based Grays Dry Lining will also be left nursing a £144,000 loss.

Among hundreds of out of pocket trade creditors Travis Perkins was also hit for £160,000 and training body Construction Skills is owed £142,000.

The remaining debts include £4m owed in redundancy and notice to the 260-strong workforce, which will also not be seen, and £11m intercompany debt and £8m owed to preferred creditors Bank of Scotland and private backers Growth Capital Partners.

BDO partner Danny Dartnail said only £1.4m has been raised from sale of assets in a report to creditors.

Killby & Gayford’s problems began just a year after chief executive Christopher Chivers led the management buyout in 2007, when the banking crisis hit the firm badly.

Until then fit-out and refurbishment work for banks accounted for 40% of orders, this diminished steadily after the 2008 banking crisis culminating in Killby & Gayford losing preferred supplier status with Barclays Bank last year.

Dartnail said that after Connaught and Rok went down in 2010 several wary suppliers sought credit insurance but were refused it on Killby & Gayford because of its mounting debt.

Around the same time bonding facilities were withdrawn and the directors approached main backer GCP for a further cash injection, which was refused.

GCP entered talks with a potential buyer but these collapsed last April and administrators were called in.

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