Avtar Construction Owed £4.4m to 250 Creditors at Collapse
Swindon groundworks firm Avtar Construction collapsed owing £4.4m to over 250 subcontractors, with administrators FRP warning unsecured creditors will likely recover nothing.
- Section
- Construction
- Author
- By Marcus Bennett
- Filed
- Length
- 1 min read
Key takeaways
- Avtar Construction owed more than 250 subcontractors and suppliers £4.4m when it entered administration
- The Swindon firm turned over around £20m last year working for Vistry, Persimmon and Barratt Redrow
- FRP Advisory said unsecured creditors are unlikely to receive any payment for unpaid invoices
Groundworks specialist Avtar Construction entered administration owing more than 250 subcontractors and suppliers £4.4m.
The scale of the debts emerged in a report filed at Companies House after administrators from FRP Advisory took charge of the Swindon-based civils and groundworks business last month.
Avtar had operated since 2010. The firm worked for regional offices of major house builders including Vistry, Persimmon and Barratt Redrow, turning over around £20m last year.
FRP said a string of bad debts hit the company, culminating in a loss of £730,000 during its last financial year.
The administrators added that unsecured creditors were unlikely to receive a penny for their unpaid invoices.
The collapse leaves a network of smaller firms exposed across the housebuilding supply chain, with more than 250 trade creditors facing total write-offs on £4.4m of unpaid work and materials.
Source: Construction Enquirer
