Buckingham creditor claims rise by £140m

Creditor claims against Buckingham Group have more than doubled to £256.3m, a new report from the firm’s administrators has revealed.

The £665m-turnover company – ranked 30th in the CN100 index in 2022 – collapsed in September 2023. It was initially thought to owe £108m, with 1,258 claims having been lodged with Grant Thornton. The number later rose to £112.8m from unsecured creditors.

An update from administrators at Grant Thornton this week said 1,375 claims had now been lodged, totalling £256.3m.

These include “significant sums” from sureties – which are likely to have been tiggered by the collapsed company failing to deliver on contractual obligations.

The administrators said they had provided a report to surety providers to help them understand the status of bonded contracts in an attempt to minimise claims against Buckingham.

They also noted that several former employees had lodged claims against the contractor, and the ongoing tribunals could push the number even higher.

Grant Thornton said Buckingham does not have enough money or property to pay its unsecured creditors.

The outcome for them could change, however, as the administrator chases debts and claims owed to Buckingham Group.

Stadium specialist Buckingham’s collapse last year was blamed on significant and increasing losses incurred on key sports and leisure contracts due to inflation pressures.

The company had also suffered losses on one key civils/build project, delays on contracts and delays on recovering significant works-in-progress balances.

The jobs it was working on included Liverpool FC’s new Anfield Road Stand, Fulham Football Club’s Riverside Stand and HS2.

It employed 669 people at offices in Stowe, Birmingham, Doncaster, London and Manchester.

Its rail division was sold to Kier for £9.6m.

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