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Street collapse hits 1,000 creditors for £3 million

NEWS

MORE than 1,000 creditors have been left out of pocket by the collapse of Wigan contractor Street Construction.

Street called in administrator DTE Leonard Curtis in February af ter problem contracts and rising overheads.

A statement of affairs prepared by the administrator said 1,088 unsecured trade creditors were owed more than £3 million. This figure includes £747,000 in retentions held by Street when it went bust.

The administrator is in talks over selling the firm's Canal Street headquarters and plant, but it warned: 'There is no prospect of a return to unsecured creditors in this case.' DTE Leonard Curtis said the firm, formed in 1975, had been working for several blue chip clients including MacDonald Hotels, Whitbread Restaurants and JJB Sports.

But the firm, which posted a £1.48 million pre-tax loss in the year to December 2004, struggled with rising overheads and in November completed a refinancing deal with Davenham Trade Finance. DTF cal led in administrators in February.

DTF made efforts to sell the company as a going concern and novate existing contracts, but talks failed and almost all of the firm's 88 staff have lost their jobs.

Company failures are rising at their fastest rate since 1999, according to credit specialist Experian.

Building and construction recorded a 17 per cent increase in company failures during the first quarter of this year, compared with 2005, as 439 firms went to the wall.