Caledonian went down owing suppliers and clients £20m

Grant Prior 2 months ago

Offsite giant Caledonian Modular fell into administration owing more than £11m in now-worthless invoices to a host of subcontractors and suppliers.

A number of clients are also listed as unsecured creditors on top of the expected raft of trade creditors.

A statement of affairs by the administrator, seen by the Enquirer, lists major project clients as creditors owed cash following Caledonian’s collapse.

Student accommodation developer Studytel is listed as an ‘unsecured creditor – contingent liabilities’ with a debt of £4.8m on a £40m student scheme in Falmouth which was half finished when Caledonian went under.

Lewisham Homes has a potential £7.2m debt listed for two south London modular housing jobs and hospitality group edyn is owed up to £1.5m on a 20-storey aparthotel job in Canary Wharf.

The Department for Education is also listed as a creditor owed up to £2m. Caledonian had a place on the DfE’s £3bn modular framework.

Administrator Alvarez & Marsal took charge of the company in March.

It stated: “The company had been loss making, with recent underperformance impacted by material price increases and delays caused by the Covid-19 pandemic.

“The company had also suffered losses as a result of quality issues on legacy contracts which required ongoing remediation.

“Combined, these factors had a significant adverse impact on both margins and the Company’s liquidity position.”

Latest accounts provided to the administrators by Caledonian’s former management show an £11.1m loss in the last full financial year from a turnover of £64.5m.

Results for the final period from April 2021 to September 2021 show a loss of £10.7m from a turnover of £32.7m.

The company’s complex ownership was explained by the administrator who said: “Caledonian  is a wholly owned subsidiary of Trent Fabrications Limited, which itself is a wholly owned subsidiary of Caledonian Group Holdings Limited (the “Parent”), both companies are registered in England and Wales.

“MAK Capital Fund LP (“MAK”) is the majority shareholder of the Parent.”

American hedge fund MAK had supported Caledonian through its recent losses and was owed £25m when the administrators moved in.

Alvarez & Marsal oversaw a sale of Caledonian to the JRL Group shortly after their appointment for £6.25m.

The report said “assets excluded from the sale include stock, work in progress and debtors.”

One subcontractor said: “Yet again it’s us in the supply chain who suffer as we won’t see a penny for the millions of pounds worth of work carried out in good faith for Caledonian.”

Latest news

Ten demolition firms named in cartel probe

Biggest names in demolition face massive fines over "unacceptable" behaviour on 19 contracts worth over £150m
3 days ago

Imtech vows to avoid big resi jobs after return to profit

Engineering services arm puts trio of loss-making residential jobs behind it
3 days ago

Sisk replaces Morgan Sindall on £1bn Midlands Highways Alliance

Four firms secure places in Midlands framework renewal race
4 days ago

Winvic wins Bristol Redcliff Quarter 468 flats job

Grainger buys planned build to rent project and brings in Winvic to start this Autumn
3 days ago

Peel takes on Wirral Waters after Urban Splash modular collapse

Developer is reviewing whether to return to traditional build methods after modular specialist collapse
3 days ago

Kier launches £80m JV to build 2,000 homes by 2027

Property arm JV with Lloyds fund to develop housing on urban brownfield sites
4 days ago

Mace chief Reynolds replaces Mitchell at CLC

Mark Reynold takes over as co-chair of the Construction Leadership Council
3 days ago

Cost inflation forces bid rethink for £200m M5 junction 10

ECI simplified and amendments made to reflect rising construction costs
4 days ago

Wages among key trades keep pace with cost of living rise

Self employed plasterers, plumbers, roofers and scaffolders enjoy wage rises ahead of annual inflation rate
4 days ago

Midgard drives recovery at JRL Group

Revenue tops £600m again at diversified contractor
4 days ago

Green light for £100m Norwich A47 dualling

Galliford Try to start work in October on 2.6km dualling between Norwich and Acle Straight
4 days ago

Design change sees 70,000 cubic metres of concrete cut on HS2 stretch

Revamp of Staffordshire cutting will mean 6,700 fewer concrete mixer lorry loads
4 days ago

Subcontractors and suppliers wanted across the Midlands

Constructionline Meet the Buyer event in Derby: Register now
4 days ago

Contract race starts as cost of giant aqueduct job hits £1.75bn

United Utilities looking to shortlist three bidders for Haweswater Aqueduct Resilience Programme
5 days ago

M&S blasts Gove after Oxford St rebuild plan called in

Retailer "bewildered" after Housing Secretary steps-in over embedded carbon concerns
5 days ago

Springfield buys rival Scottish house builder for £46m

Mactaggart & Mickel Group takeover deal includes 17 sites with planning for 700 homes
5 days ago

Costain bets on hydrogen infrastructure

Consortium launches to develop hydrogen infrastructure for shipping and aviation in the Westcountry
5 days ago

Caddick starts on Star Wars bar office scheme

Host of employee-friendly features on new building at Crewe Business Park
5 days ago

Murphy to host virtual recruitment day

Specialist engineering and civils contractor opens doors online to potential new staff: Register now
6 days ago

Plans in for Isle of Dogs 52-storey resi tower

460 flats skyscraper to replace offices at 4 & 5 Harbour Exchange Square
6 days ago

Van Elle seals piling deal on Transpennine Route Upgrade

Firm appointed to the piling framework for the West of Leeds section
6 days ago

Demolition firm fined £5,000 after fatal platform fall

Contractor went into administration following death plunge at Scottish Power site
6 days ago

Modular specialist TopHat to open vast housing factory

Goldman Sachs-backed house builder to open Europe's largest modular factory in Corby
7 days ago

Asphalt giants make low carbon standard for road mixes

Tarmac and Aggregate Industries make warm mix asphalt new standard on highways jobs
6 days ago

Wates launches Retrofit brand for net zero work

Wates Retrofit to target domestic and non domestic clients
6 days ago

BAM wins £24m Wigan net zero carbon school

BAM has started enabling works at Fred Longworth High School development
6 days ago

Urban Splash modular failure to cost supply chain £12m

Suppliers left with mountain of worthless invoices following Urban Splash House collapse
7 days ago

Kier to trial hydrogen generators on site

Zero-emission generator to start trial on South West site
7 days ago

Hinkley Point remobilises to over 8,000 workforce – video

Construction work on second reactor achieves 20%-30% efficiency savings
7 days ago

Kier and Wates win £500m deal to expand six prisons

New houseblocks to be built at HMPs Bullingdon, Channings Wood, Elmley, Highpoint, Hindley and Wayland
1 week ago

Contractor services