Bardsley crashed owing £45m to trade creditors

Aaron Morby 1 month ago
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Manchester-based building contractor Bardsley collapsed owing £45m to unsecured creditors.

Paul Strutt, managing director of Bardsley Construction and chairman Roly Bardsley in happier times when the business was growing strongly
Paul Strutt, managing director of Bardsley Construction and chairman Roly Bardsley in happier times when the business was growing strongly

Administrators for the £80m revenue group said that claims from out-of-pocket trade contractors and suppliers were still being processed and it had yet to quantify the amounts owed.

According to a directors’ report, Bardsley Construction owed £31m, Bardsley Construction Holdings nearly £11m and Bardsley Group just over £3m.

Administrators from insolvency specialist Duff & Phelps said that they expected to raise sufficient funds to pay all prefered creditors and a small part of what is owed to unsecured creditors.

At the time of the collapse, Bardsley had 11 sites on the go with around £11m owed to the builder.

So far around £1.4m has been raised. There are also £5m of retentions being held by clients.

In a update to creditors, joint administrator Steven Munster said that Bardsley had been toppled by a toxic mix of challenging market conditions, contractual disputes with private clients and new work opportunities being delayed.

He said: “The main reason for the group’s failure was as a result of contractual issues in late 2018 on three major projects, which negatively impacted revenues by £3.2m, ultimately resulting in a trading loss of £2.6m being accrued for the year.

“New work streams had been slow in the first half of 2019 with several opportunities turned down due to the nature and risk related to them.”

He added that despite securing several new jobs in October and November, which strengthened the 2020 order book, work was not due to start until the New Year leaving the firm with no cash.

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