Administrator KPMG finds £2m to pay trade creditors, leaving £4.5m shortfall
Trade creditors are chasing £6.5m in unpaid contracts after the collapse of century-old Nottinghamshire-based contractor Herbert Baggaley Construction.
Administrator KPMG estimates £2m can be found to pay trade creditors, leaving an estimated £4.5m shortfall.
In a creditors report filed at Companies House this week, KPMG said the general downturn in the economy and decreased activity and margins had forced the firm under.
A further 17 staff have been made redundant since February, when 83 staff lost their jobs. Only four staff are now retained.
KPMG is able to pay preferential creditors – which comprises wages and holiday pay for the firm’s former and current staff – in full at £73,425.
The Mansfield-based firm, which dates back to 1908, made a £1m loss in both 2011 and 2012, KPMG said.
KPMG was drafted in two months before the firm entered administration to try and find a buyer or investor, but despite contacting 100 parties this was unsuccessful.
The majority of out-of-pocket trade creditors are local East Midlands-based firms. The worst hit were Leicester-based East Midlands Electrical (£125,506), Loughborough-based RKN Aluminium (£104,932), Nottinghamshire-based Oakfield Construction (£104,085) and Nottingham-based Data Contracts (£103,493).
Other creditors include Aggregate Industries (£10,660), Deloitte (£14,100), T Clarke (£86,049), Elliott Group (£27,499) Speedy Asset Services (£53,835) and Travis Perkins (£20,452).