Readie Construction collapsed with debts of £34m

Essex-based contractor Readie Construction collapsed with total debts of £34m.

The £421m-turnover firm fell into administration in early February leaving over 440 subcontractors and suppliers out of pocket.

According to the statement of company affairs released by administrator Begbies Traynor, subcontractors alone are owed £18.8m.

Other trade creditors were left £6m out of pocket, with around 158 staff also short £1.2m in wages.

HMRC counted as a preferred creditor was owed just over £8m and looks set to absorb any available funds and assets, which included £1m held in the bank at the time of Readie’s collapse.

The logistics and warehouse specialist blamed inflationary cost pressures, several subcontractor failures, and chronic tightening in the performance bond and trade credit insurance markets for tipping it over the edge.

Readie Construction was founded in 2007 by chairman Stuart Read and in March 2021 switched to an employee-owned trust.

The contractor had grown rapidly on the strength of the warehouse and logistics market more than doubling turnover from 2021 when it reported revenue of £179m.

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