CONTRACTORS, amongst them several roofing contractors, are to miss out on payments totalling £9.1m after a building company entered administration.
Administrators at PwC were called in to Preston-based Marcus Worthington & Company Ltd at the request of creditors, Cumberland Building Society on 30 September 2019.
A statement of affairs by the administrators revealed debts of £23m, of which £9.1m was owed to suppliers and subcontractors, with a further £1.2 in retentions.
Cumberland Building Society was owed £7.4m, with a further £743,000 owed to employees and £329,000 to HMRC.
About 90 staff also lost their jobs as a result of the insolvency.
A statement from PwC read: “Peter Dickens and Toby Underwood were appointed joint administrators of Marcus Worthington and Company Limited (MWCL) by the High Court on 30 September 2019.
“The Directors subsequently appointed Peter Dickens and Toby Underwood joint administrators of Stonewell Property Company Limited, Hollinwood Homes Limited, Breightmet Investments 1 Limited and Breightmet Investments 2 Limited (the Additional Companies) on 14 October 2019.
“MWCL was established in 1975 and provided construction and development services to third parties and other group entities. The Additional Companies hold various property assets for residential development and commercial investment purposes.
“Following its insolvency, the joint administrators reviewed the contracts held by MWCL and concluded that they could not be continued in the administration. As a result, c90 employees across the various operating contracts and head office were unfortunately made redundant and the joint administrators are providing the appropriate support.
“A small number of employees have been retained to assist the joint administrators while they review the operations and financial position of the companies.”