UK construction firm plunged into administration with £17M unpaid bills | UK | News
Merit Holdings fell into administration last November. But Interpath administrators, who took control of the firm, announced the size of the debt earlier this year, saying it was “extremely unlikely” that unsecured creditors would receive any payment for the outstanding invoices.
The Northumberland-based company was founded by former managing director Tony Wells and has become a leading name in the off-site and modular construction sector.
His latest accounts showed that he was in good financial shape; Results announced for the year ending 30 June 2025 show turnover of £79.9 million and pre-tax profits of £4.3 million.
Unfortunately, the collapse of the company resulted in the layoffs of hundreds of employees, of which 284 people were employed at the time.
The administrator’s report, which came just a few months later, revealed that a “significant disposal of assets” had been agreed with a linked party for £396,000. The buyer is Merit Industrialized Construction Ltd, a newly formed company. was.
Kirsty Wells, Matthew McGrady and David Wilkinson, directors of Merit Holdings, were also directors of Merit Industrialized Construction Ltd at the time of the acquisition, Companies House records show.
Records also show that Kirsty Wells acquired two new companies, Blaze Technology and Newco MHL Ltd, in November, and the administration process took place around the same time.
Interpath’s report does not allege any wrongdoing, but it does show that unsecured suppliers and subcontractors face significant losses, while creditors’ prospects are limited.
