Patton collapse costs suppliers and subbies £58m

Grant Prior 13 years ago
Share

The collapse of the Patton Group is set to cost subcontractors and suppliers £58m.

The figure was contained in the administrator’s report into the collapse of the construction business which was based in Ballymena, Northern Ireland with offices in London and Milton Keynes.

Patton worked across the UK before it went into administration last November.

Administrator Tom Keenan confirmed that subcontractors and suppliers are unlikely to get anything.

Keenan said in a report seen by the BBC there is “unlikely to be a dividend for unsecured creditors”.

He said this is based on assumptions regarding how much money can be recovered from outstanding contracts and work in progress.

No offers have so far been made for the remaining parts of the business which owned a significant property portfolio which is now set to be sold.

The report said Patton came under pressure as part of the economic downturn and faced reduced activity levels and lower profit margins.

This was exacerbated when a customer entered administration without paying for work and a Patton subsidiary in England went bust.

This put the business under severe cash flow pressures and the directors were unable to raise new finance.

The failure of Patton has already dragged down one leading trade contractor.

Northern Ireland based painting specialist the Joseph Hughes Group was a major subcontractor to the firm and went into administration last month with the loss of 147 jobs.

 

Latest news

Thames Water finance chief joins BAM UK & Ireland

Abigail Farrell-Black joins contractor as new finance head after senior roles at Thames and Southern Water
8 hours ago

GRAHAM gets go-ahead for £110m Boddingtons Brewery revamp

Work to start this summer after Gateway 2 approval secured
9 hours ago

FM Conway profit jumps to £33m under Vinci

Turnover hits £608m and cash surges £68m just two months into new ownership
11 hours ago

McAlpine breaks ground at £1.25bn Port Talbot green steel job

Port Talbot switch to scrap-powered production by 2027
11 hours ago

Cappagh lands £136m Portsmouth Water deals

Utility specialist wins AMP8 contracts for infrastructure and smart meters
11 hours ago

Rethink over “anti-dumping” tariffs on Chinese diggers

Fair trade body reconsiders ruling after lobbying by manufacturers
11 hours ago

Sparks agree near 4% wage increase from 2026

Top hourly rate in London to rise to £26.70 under JIB deal
11 hours ago

Morgan Sindall to build new Cambridgeshire school

Latest win for contractor at Alconbury Weald development
11 hours ago

BSR backlog swells as new build approvals run to 36 weeks

First official Government figures expose full extent of Gateway project logjam
3 days ago

Repair slowdown drags down construction output

New work activity rises in May despite overall 0.6% output fall
3 days ago

Equans suffers £29m loss as new build exit drags on

Refocused retrofit contractor still dogged by legacy losses despite profitable core work
3 days ago

Scaffolding trade body NASC facing discrimination claim

Former training manager to take trade body to Employment Tribunal
3 days ago

ACS lands lead role on Stafford transformers lab

Contractor to start main £20m expansion in live site environment
3 days ago

GRAHAM sees profits rise despite dip in turnover

Record order book as contractor confident about future prospects
3 days ago

Nixon Hire sells 200-strong welfare van fleet to Sunbelt

Sunbelt more than doubles mobile site welfare capability
4 days ago

Henry family and directors face claims topping £31m

Administrators chasing dividend payout, unpaid loans and family benefits
4 days ago

Vistry eyes second-half affordable homes work surge

Government rent reforms and funding pledges power-up work pipeline
4 days ago

JV picked to progress Severn-Thames water transfer plan

AtkinsRéalis and Stantec to map pipeline or canal link
4 days ago

Police catch on the run construction boss

Director missing for months after failing to appear in court after site death
4 days ago

Green light for £800m Poplar estate revamp

Construction to start next year at Teviot Estate
5 days ago

Civil engineering trade body boss leaves to join Mace

CECA Chief Executive Alasdair Reisner joins consulting arm
5 days ago

House builders offer £100m to drop competition probe

CMA set to strike deal with cash going to affordable housing programmes
5 days ago

Transport Secretary axes £1.4bn road jobs in south east

Alexander pulls plug on A12 and A47 upgrades in budget crackdown
5 days ago

Fusion taps HG for first Birmingham student job

622-bed Bristol Road scheme kicks off contractor’s Midlands push
5 days ago

VolkerWessels UK parent group to sell core Dutch business

UK, German and North American operations remain with Dutch owner Reggeborgh
5 days ago

Union claims sex pests are rife in construction

Shock assault figures following Unite survey of 100 workers
5 days ago

Green light for two more City of London towers

Combined 77 more storeys of office schemes approved
6 days ago

John F Hunt starts enabling works on £200m Strand Premier Inn

Main contractor due to be appointed this summer
6 days ago

£200m deal unlocks full 1,000-home Digbeth scheme

Caddick has started early works on the Moda-led Stone Yard project
6 days ago

10 big road and rail upgrades get funding green light

£1.3bn A66 dualling, Simister Island junction upgrade and Midlands Rail Hub get funding
6 days ago