Details of the extent of the fit-out firm’s debt with subcontractors and suppliers have been revealed in a report from administrators Begbies Traynor.
The fit-out firm went down with the loss of around 148 jobs at the end of July, mainly due to a contract dispute with a client causing £16m to be withheld.
Around 70 other staff jobs were saved from the sale of two key London hotel contracts at Whiteleys and the Dorchester.
The Chessington-based contractor, which became an employee ownership trust in 2021, had been in business for 30 years specialising in luxury fit-out work across the hotel, museum, residential, and bespoke joinery sectors.
Last reported accounts for 2022 revealed revenue of nearly £140m and a pre-tax profit of £7.2m.
After struggling to pay subcontractors, it was hit with a winding-up petition last June, which was supported by over 20 other firms in its supply chain.
This triggered the appointment of Begbies Traynor on 23 July.
Among the preferred creditors, expected to receive some return are the 148 former staff owed £710,000 and the HMRC owed £6.9m.
Unsecured creditor debts total £69m, including £9.8m of inter-company creditors, £20m provisions for contract claims and £37.5m owed to trade creditors.
Beck Interiors was owed £9.4m in retentions and £11m for unpaid works when administrators were called in.
Based on the accounting records for Beck Interiors, a further £51m was owed from connected companies. These are:
- Beck MBI Limited – £31m
- Beck MBI 2 Limited – £14m
- Beck MBI 3 Limited – £4.4m
- Unusual Projects Limited – £741,000
- The Hub Developments Limited – £3,500
- Beck Interiors International Limited -£1.2m
In its report, Begbies Traynor warned creditors these connected companies did not have the ability to repay the sums.
