Construction Enquirer News Administrators reveal scale of debts at failed Welsh contractor
Subcontractors and suppliers hit by the collapse of Welsh contractor WRW are owed £18.7m.
Administrators from Grant Thornton have revealed the scale of the company’s debts in a report filed at Companies House.
Unsecured creditors are owed £18.7m and a loan company called ThinCats is owed £10m.
WRW employed 100 staff before its collapse in July who are owed £257,000.
Hundreds of suppliers are listed in the documents as creditors and Grant Thornton said they are unlikely to receive anything beyond an £800,000 pot of realised assets to cover the debts.
Delayed projects hit cashflow at WRW in late 2019 which was exacerbated by the pandemic and a reduction in the firm’s trade credit insurance.
Revenues fell by up to 60% on pre-pandemic levels and the firm was hit by weather damage to a roof on a major project in late 2020.
The final straw for the business was losing an adjudication case in July which led to WRW going into administration.