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.