Main contractor Colmore Tang has entered voluntary liquidation after being hit by a winding up order from HMRC.
The Birmingham-headquartered firm, which turned over £95m in the year to 31 May 2018, had been downsizing since the pandemic hit and since 2021 had not generated enough revenue to be required to file full accounts.
Those accounts said that the company would “maintain its focus on careful selection of specialist construction projects, in particular cladding and facade remediation”.
It had only one ongoing project, the repurposing of the Royal Angus Hotel in Birmingham city centre for Seven Capital, when it was hit with the winding up order by HMRC in late October.
Richard Rendle, liquidator at Rendle & Co, said: “The company was several weeks away from completing its one remaining contract when HMRC issued the petition, which was a surprise to the company.
“The company had hoped to complete the contract, which it believed would have enabled it to satisfy all its creditors. However, the issue of the petition meant that the company was unable to continue to trade and hence could not complete the contract.”
He said the client had already appointed a replacement to complete the job.
The firm’s latest abridged accounts, for the year to 31 May 2022, show that it owed creditors more than £2.36m at the time.
Colmore Tang was formed in 2013 by Seven Capital when a contractor pulled out of a major Birmingham job and the client sought the most efficient way of replacing it.
According to its former website, which is now offline, Colmore Tang built 3,500 apartments and delivered 180,000 square feet of retail space during its existence.
It also specialised in repurposing existing commercial and hotel accommodation, as well as cladding remediation.
Earlier this week, demolition specialist Squibb Group applied to enter administration after being served a winding up petition by HMRC, while the administrator for Buckingham Group also cited pressure from the tax authority as a trigger for the company’s collapse.
HMRC issues winding up petitions against companies when it is owed unpaid tax and interest and does not agree to a Time to Pay debt repayment plan.