Longcross Construction won a supermarket extension job from Sainsbury’s less than three weeks before it entered administration.
The company called in administrators on 16 June, having been appointed to build the 80,000 sq ft store extension in Redhill on 27 May (pictured).
A Sainsbury’s statement at the time said “scheme construction is expected to begin on Monday 15 June” and was due to finish in late 2016.
That start date proved to be the day before Longcross Construction called in administrators from Deloitte, with parent company the Longcross Group announcing its intention to appoint administrators soon after.
A Sainsbury’s spokesman said there would be a temporary delay to the project, but added that the company was “committed to delivering the project and currently talking to people to continue the works as quickly as possible”.
It is likely to seek another of its framework contractors to take on this work along with a number of smaller convenience store jobs on which Longcross had been appointed.
The spokesman said: “We are working closely with our suppliers and have put in place plans to complete construction works on a small number of sites.”
Data from Glenigan shows that Longcross Construction was also involved in projects with Criterion Capital to build flats in Croydon. Criterion declined to discuss the situation.
A Longcross statement when the contract was awarded in January said: “We’re incredibly pleased to have picked up three major office-to-flats schemes worth £48m in Croydon.”
Longcross was also involved in two smaller projects for Sainsbury’s, as well as the £5.5m extension of Carshalton College in south-west London, and a £9.5m development of warehouses in Bexley for Wrenbridge.
Its other arms, LX Engineering and Longcross Fire & Security, are not affected by the administration.