High-profile London sites have been closed as Ardmore Construction Group went into administration on Thursday 11 June.

More than 500 staff are expected to be affected by the collapse of the business. The business is thought to have slipped into administration following concerns over possible liabilities linked to legacy residential projects undermined its ability to secure new work triggered a cash flow crunch.

Businesses affected include Ardmore Major Projects, Ardmore Hotels & Commercial, Ardmore Regeneration, Ardmore Fitout and Landmark Facades.

Ardmore was working on around 10 major projects across London and clients are now working to engage replacement contractors to complete schemes.

The administration marks the latest chapter in the group’s long-running battle to contain liabilities arising from historic residential developments requiring extensive fire safety remediation following post-Grenfell regulatory changes.

Understanding administration

Administration is when a company is given legal protection from creditors while an appointed administrator attempts to rescue the business or achieve a better outcome for creditors than liquidation would provide. During this time, creditors generally cannot pursue claims against the company without court permission.

It’s important to note that in cases like this, immediate payments to creditors are rare, except in exceptional circumstances. Most creditors will need to wait for the administration process to be completed, which can take time. Therefore, it’s crucial to manage expectations regarding cash flow.

FIS, trade body for the finishes and interiors sector, has published some guidance on what action businesses could take if they are affected by this closure.

Money Advice Trust

If you have been affected by collapse of Ardmore, The Money Advice Trust is available to support individuals to prevent financial difficulty and remove problem debt from people’s lives. More details and how to access advice is given below.

About the Money Advice Trust

  • The Money Advice Trust is a charity which helps prevent financial difficulty and removes problem debt from people’s lives.
  • The charity runs National Debtline and Business Debtline, providing free, impartial and expert advice by phone, webchat and online.
  • National Debtline: 0808 808 4000 | www.nationaldebtline.org
  • Business Debtline: 0800 197 6026 | www.businessdebtline.org

 

Trade body FIS is working with its lawyers to establish guidance for the supply chain, and will publish this as soon as possible.

 

They have also published some guidance on what action businesses could take if they are affected by this closure.