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You are at:Home » The south London contractor owed creditors £9m when it collapsed
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The south London contractor owed creditors £9m when it collapsed

Machinery AsiaBy Machinery AsiaJune 29, 2023No Comments2 Mins Read
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South London contractor Claritas Group owed more than £9m when it collapsed earlier this month.

The Bromley-based company went into voluntary liquidation from creditors, citing the impact of inflation on its finances.

A statement of affairs published at Companies House this week shows it owed a total of £9.36m to 250 creditors at the time.

While his 84 former employees will be paid and HMRC will receive £1.1m of the £1.8m owed to him, no other creditors have been set up for any payments.

Companies classed in the statement as ‘trade creditors’ were owed £2.69m, while ‘subcontractors’ will be paid out of pocket a total of £4.62m.

Lloyds Bank is owed £222,286, which will also not be repaid as it is a non-preferential unsecured claim.

Claritas was founded in 2014 as Airey Miller Construction. It later became AMCM, then in 2020 changed its name to Claritas Group.

According to its latest published accounts, for the year ending 31 March 2022, it had a turnover of more than £50m, more than double the revenue of three years earlier, when turnover was 23, 6 million pounds sterling.

In a statement released when the liquidation was announced, Claritas Group founder and chief executive Jon Wardle said: “I am deeply sorry for the impact this will have on your projects, people and businesses.

“The challenge of cash flow and loss management associated with the inflationary pressures of these uncertain times was too great.

“To our supply chain that supported us all the way. I thank you all and am sorry for the impact on you, your respective employees and supply chains.”

He added that he hoped the company’s “sad demise” would “provide inspiration for a more sustainable and collaborative industry.”

In November 2021, the firm was appointed as the replacement contractor on a £50m student accommodation development in South Wales (pictured), called True Student Swansea, following the col lapse of Create Construction. Create also blamed the impact of rising costs for its own demise.

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