The huge debt owed to subcontractors came despite the efforts of Torsion bosses to minimise the impact on suppliers by organising direct payments to subbies by clients as the company’s money troubles grew.

An update for creditors from administrator Interpath said: “Given the company’s deteriorating cash position, the company agreed to introduce direct payment arrangements between development funders and subcontractors on several projects to maintain project delivery.

“Although this agreement safeguarded payments to some of the company’s supply chain, it reduced flexibility in the level of working capital available to the company.”

Interpath said Torsion was sunk by a combination of rising costs and a slow down in construction activity.

The firm had racked-up losses of £847,000 from a turnover of £78m while it traded in 2026 compared to a pre-tax profit of £497,000 from a turnover of £165m in 2025.

Interpath said unsecured creditors were “highly unlikely” to receive a penny for their unpaid debts.