Main contractor Colmore Tang has gone into voluntary liquidation after being hit by a winding-up order from HMRC.
The Birmingham-based company, which had a turnover of more than £95m in the year to 31 May 2018, had been shrinking since the pandemic and by 2021 had not generated enough revenue to force itself to submit full accounts.
Those accounts said the company would “maintain its focus on the careful selection of specialist construction projects, particularly cladding and facade repairs”.
It had just one ongoing project, the re-use of the Royal Angus Hotel in Birmingham city center for Seven Capital, when it was hit with the winding-up order from HMRC at the end of October.
Richard Rendle, liquidator at Rendle & Co, said: “The company was several weeks away from completing its only remaining contract when HMRC issued the petition, which came as a surprise to the company.
“The company hoped to complete the contract, which it believed would have allowed it to satisfy all its creditors. However, the problem with the petition meant that the company was unable to continue trading and was therefore unable to complete the contract.”
He said the client had already appointed a replacement to complete the job.
The company’s latest abridged accounts, for the year to 31 May 2022, show it owed creditors more than £2.36m at the time.
Colmore Tang was formed in 2013 by Seven Capital when a contractor stood down from a major job in Birmingham and the client looked for the most efficient way to replace her.
According to its former website, which is now offline, Colmore Tang built 3,500 apartments and delivered 180,000 square feet of commercial space during its existence.
It also specialized in the reuse of existing commercial and hotel accommodation, as well as in the repair of cladding.
Earlier this week, demolition specialist Squibb Group filed to enter administration after receiving a winding-up petition from HMRC, while administrator Buckingham Group also cited pressure from the ‘fiscal authority as a trigger for the company’s collapse.
HMRC issues winding-up petitions against businesses when they owe unpaid tax and interest and does not accept a Time to Pay debt repayment plan.
