Failed fit-out specialist owed creditors £23m

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Fit-out specializer Twenty 1 Construction owed £23.2m to much than 600 companies astatine the clip of its collapse.

New documents released by head Grant Thornton uncover contractors, plant-hire companies, worldly providers and architects were among the creditors owed currency erstwhile Twenty 1 went bust successful March. They are each unsecured creditors, which are owed astir £13.3m of the total.

The companies are not expected to person immoderate wealth back, according to the document. About £3.3m of the wealth owed to unsecured creditors is successful unpaid retentions.

Former employees of the steadfast are owed astir £178,000 successful wages – up to £800 each – successful accrued vacation wage and contributions to pension schemes. Some of this full volition beryllium funded by Twenty 1’s plus sell-off, but a “significant element” volition request to beryllium claimed done the government’s redundancy outgo work (RPS).

The RPS’s relation is specifically to conscionable outstanding payments erstwhile erstwhile employers cannot spend to bash so.

It is unclear if secondary preferential creditors, including HMRC, volition beryllium paid a dividend to trim their losses, which full astir £9.7m.

The study besides reveals further details connected the crushed for Twenty 1’s collapse, including that the contractor’s profitability and gross were deed by a slowdown successful bureau fit-out jobs, caused by the coronavirus pandemic.

The company’s betterment aft the archetypal waves of the pandemic was past stopped successful its tracks by the interaction of the Omicron variant of COVID.

Recovering debts from a fig of debtors became “increasingly challenging” arsenic clip went on, the study continues. “Whilst autarkic adjudicators were instructed to mediate connected the debt, the resulting delays successful collecting the currency from these debtors led to important cashflow issues for the companies.”

Founded successful 2012, Twenty 1 Construction completed enactment successful premier London locations, including Aldwych, Grosvenor Street and Farringdon. The steadfast besides fitted retired 2 floors of British Land’s Broadgate Tower, and worked with the likes of Mace and WSP astatine 110 Bishopsgate successful the City of London.

Twenty 1’s illness came a period aft the fig of operation companies going into medication reached its highest level since the start of the pandemic. Although the fig decreased to 22 firms successful April, 1 adept has warned the diminution volition beryllium shortlived and galore companies volition beryllium forced to record for medication successful the coming months.