Surrey-headquartered contractor Blenheim House Construction Limited has filed for administration following an “extraordinarily difficult” trading period.
The main contractor, based in Chertsey, lodged an application with the Companies Court yesterday (15 July) after 26 years of trading.
International law firm, Womble Bond Dickinson, appears to be listed as the company’s legal representative.
The filing follows a winding up petition filed by London-headquartered Radius Construction Limited against Blenheim last week (8 July), with MJD Solicitors in Brentwood acting for Radius.
Winding up petitions are serious legal actions and can lead to a company’s bank accounts being frozen.
An unpaid creditor can petition the courts to force an insolvent company into compulsory liquidation.
The company said its order book had been hampered by many issues causing project opportunities to falter and, following an “unprecedented catalogue of problems”, its balance sheet has depleted and Blenheim is unable to continue to trade.
Blenheim chairman, David Pearce, formed the business in 1996, which today specialises in commercial and mixed-use new build and refurbishment projects, and is thought to employ around 84 staff.
Led by managing director, Richard Taylor, a third of Blenheim’s staff have been with the company for more than 10 years, with several having celebrated their 25th anniversary.
Latest accounts to 30 April 2023, appear to show turnover of £86.6 million, with delays due to supplier and sub-contractor insolvencies and additional costs leading to the company reporting its first operating loss in its 26 years of trading.
“This was generally a consequence of fewer good opportunities in our sector and an increase in competition,” a financial report also states.
Balance sheet depleted
Blenheim House directors said: “The Board of Directors regretfully confirm that, after 26 years of trading, Blenheim House Construction has filed an application with the court to enter into administration.
“As has been the case for many contractors in our sector, the last few years have been extraordinarily difficult, with project losses due to failing subcontractors, COVID and high inflation, and this critically damaged our profitability.
“Simultaneously, our order book has been hampered with myriad issues causing potential project opportunities to falter.
“It has been an unprecedented catalogue of problems, the combined effect being that we have depleted our once healthy balance sheet, and are now in a position where we are unable to continue to trade.
“Every effort has been made to try to secure the future of the business, but recent circumstances have made this untenable.
“We have been forced to consider what is best for our staff and creditors, and under advisement the decision has been reached to cease trading until administrators are appointed and discussions can be held between them and the various stakeholders relating to current projects.
“For us and our exceptionally dedicated staff it is obviously a very difficult and sad time, but since our formation we have been very fortunate to work with some of the best clients, consultants, contractors and suppliers in the industry, and we thank everyone who has worked with us.”
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