Patton collapse costs suppliers and subbies £58m

Grant Prior 12 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

26 face fight to renew spots on £1bn NEPO civils deal

Next generation framework to start in March 2025
21 hours ago

Go-ahead for £170m King’s Cross life sciences office project

Innovative arched design to carry landmark building over railway tunnels
21 hours ago

Mitie buys power contractor ESM for £8.5m

Building FM firm strengthens high voltage contracting offer
20 hours ago

New vision unveiled for £5bn Liverpool Waters

More housing included in central docks area after Labour £55m funding boost
1 day ago

String of contract wins sees turnover surge 25% at Mace

Construction division sees revenue leap to £1.73bn
21 hours ago

Morgan Sindall wins £32m Walsall waste centre

Contract will transform former metal factory site
21 hours ago

Kier wins £30m Greenwich teaching block

London South East Colleges plans to spend £47m on Greenwich Campus redevelopment
1 day ago

Blenheim House Construction applies for administration

Surrey contractor employs around 80 staff generating £87m turnover
2 days ago

GMI chief jumps to Henry Boot Construction

Lee Powell will replace Tony Shaw as MD when he leaves at the end of 2024
2 days ago

Avant Homes makes £109m loss

House builder reveals huge loss just days after entering Crest Nicholson bid race
3 days ago

Greggs unveils plans for giant distribution centre

Bakery giant to build 311,551 sq ft logistics centre in Kettering
2 days ago

£330m south east London 1,250 homes scheme approved

Outline planning for New Belvedere development near the Thames
2 days ago

Green light for Birmingham 1,200-bed student scheme

Cambrian Wharf project will rise to 14 and 35 storeys
2 days ago

Welsh fit-out specialist files administration notice

£30m turnover employee-owned Paramount D&B lodges court notice
3 days ago

Skanska signs £105m London Millbank office rebuild

Original 1915 building facade will be dismantled and rebuilt
3 days ago

Historic facade contractor goes into administration

Administrator seeking buyer for Charles Henshaw & Sons
6 days ago

Three-year HS2 station box excavation completed

Enough clay to fill 300 Olympic sized swimming pools removed from Old Oak Common site
3 days ago

BAM starts £88m Fife passivhaus school job

1,800-pupil school will be built near Rosyth Docks
3 days ago

Torsion appoints new Chief Operating Officer

David Worsley promoted as leadership team shuffled at Leeds based firm
3 days ago

Tilbury Douglas site manager saves schoolboy’s life

Site manager carries collapsed schoolboy to resuscitation unit he helped build
6 days ago

Extra HS2 payment sees SCS contract jump to £4.24bn

Skanska Costain Strabag JV additional payments rise to £650m after third handout
3 days ago

Plans lodged for 3,300-home Salford tower cluster

£1bn Regent Park scheme includes UK's third tallest building at 70 storeys
6 days ago

Domis founder Lee McCarren steps down

Fellow director Kingsley Thornton takes helm as co-founder retires
6 days ago

Spencer lands civils package on £300m energy plant

Subcontract worth £23m on pioneering Manchester green energy storage scheme
6 days ago

Van Elle and M&J Evans team-up for housing works

Piling and groundworks specialist start new collaboration deal
6 days ago

Muse JV closes Wolverhampton City Centre West quarter deal

English Cities Fund completes council partner deal for 1,000-home plan
6 days ago

Ofwat approves £88bn AMP8 water spending spree

Spending on infrastructure ringfenced, unspent funds returned to customers
7 days ago

‘Bellingham Bridge’ takes shape on HS2 in Birmingham

Watch work on four huge piers for bridge named after England superstar
7 days ago

Construction swings from weakest to strongest sector

Construction output rebounds by 1.9% in May after three months of decline
7 days ago

Costain appoints new commercial director

Paul Morris takes over from David Taylor
7 days ago

Contractor services