Supply chain owed £3.8m after collapse of London builder
London-based refurb and building specialist ME Construction went into administration owing subcontractors and suppliers nearly £4m.
An update from administrator FRP Advisory showed more than 300 trade creditors were owed £3.8m when the firm went under in March.
Its civils arm MEC Groundworks also went into liquidation owing more than £100,000 to unsecured creditors.
Suppliers left holding unpaid invoices are unlikely to receive a penny for their debts.
The firm was founded in 2007 by two ex-employees of Bovis Lend Lease – Barry O’Sullivan and Dennis Bernard who left the business three years ago.
MEC specialised in small to medium projects within the M25 across heritage, residential, commercial, healthcare and schools sectors with revenue peaking at around £23m before covid.
Management accounts to December 31 2021 showed a turnover of £17m generating a net profit of £177,000.
FRP said the firm was hit by reduced margins and an unsuccessful acquisition which exposed the business to “significant liabilities”.
Day to day running of the MEC business was also impacted by an extended leave of absence for its managing director Sean O’Connor following serious personal health issues.