Newcastle-based Norstead collapsed owing £7.2m to unsecured collectors, administrator FRP Advisory has revealed.
The mechanical & engineering specialist contractor, which turned over £20.3m in 2021, was compelled to make 52 workers redundant earlier than coming into administration on the finish of February. The group was the sister firm of Metnor Development, which additionally collapsed earlier this 12 months, owing £10m.
Now a press release of affairs printed by FRP Advisory exhibits that Norstead’s internet liabilities are £13m, with the group additionally owing £6m to its shareholders, £88,000 to workers and £50,000 to HMRC.
The group had £641,000 within the financial institution on the time of its collapse, with the sale of its autos prone to increase one other £181,000.
The group’s unsecured collectors embody dozens of suppliers and subcontractors, that are owed tens, and in some circumstances a whole lot, of 1000’s of kilos. The largest excellent debt is to Metnor, which is owed £885,000, intently adopted by Accredited Insurance coverage, owed £870,000.
Different corporations owed cash embody producers Northern Vent Providers (£54,000), Ventilux UK (£69,000), Prefabricated Options Restricted (£136,000) and Frenger Methods (£45,000), in addition to pipework installers Truarc (£58,000).
FRP Advisory stated Norstead collapsed as a consequence of elevated labour and materials prices, Covid-related prices, the withdrawal of a key funder and a scarcity of worth that will have been created by novating its contracts.
