Construction firm's Christmas collapse leaves contractors in the lurch

A workforce of 200 at Manchester based Bardsley Construction Limited were laid off on December 19, last year when the company called in administrators leaving building projects unfinished.

And the collapse of the company has also left suppliers and contractors with unpaid invoices totally many thousands of pounds.

In a letter posted on the firm’s website the administrators gave the bad news. It reads: “Steven Muncaster and Stephen Clancy, both managing directors of Duff & Phelps Ltd., were appointed Joint Administrators of Bardsley Construction Limited (“the Company”) on 19 December 2019.

“The Company has ceased to trade whilst the Joint Administrators undertake an urgent review of the financial position of the Company whilst marketing the business and assets of the Company for sale.

“Please be advised that Steven Muncaster and Stephen Clancy were also appointed as Joint Administrators of the non-trading group companies, Bardsley Group Limited and Bardsley Construction Holdings Limited, on the same date i.e. 19th December 2019.”

Ian Carrotte of ICSM Credit said the construction industry was taking a hit during the country’s current economic slowdown as projects are curtailed and workers laid off. He said: “In our regular newsletter I’ve seen a huge rise in the numbers of building firms go to the wall. It’s very concerning but our members stay in the loop to avoid suffering losses from another Carillion.”

Steven Robson for the Manchester Evening News said Bardsley Construction was founded by joiner Roland Bardsley in 1964 had experienced cash flow problems caused by late payments despite winning an £11m contract for Tameside College in Ashton-under-Lyme last year. There was the £16m contract for the StayCity Aparthotel, New Cross, due to be completed in January 2020 and the Burnage Lane homes for Southway Housing Trust worth £8m along with several other projects on their books.

However Dave Rogers of Building News said: “”Stockport contractor Goodwin Construction has brought in a dozen former employees of collapsed contractor Bardsley to take staff numbers at the firm up to the 50 mark.”

Meanwhile contractors and creditors await the report from the administrators to discover whether they will be able to receive any of their cash or even if the company can be relaunched or a buyer can be found.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk

Pic: Building News