Is credit risk the biggest concern for construction companies in 2013?
Construction News sent out news today of the top 12 construction stories of 2012 and 5 of those 12 related to company insolvencies!
- Administrator in talks to sell parts of Doyle
- Rotary “for sale” as parent firm Hastie enters administration
- M J N Colston to file for administration
- Kilby and Gayford goes into administration
- Burdens falls into administration
Each time a nationally known contractor goes bust, they leave a raft of unpaid creditors (suppliers and sub-contractors) which drains more cash out of an already cash strapped sector – so no wonder that these stories attract the highest reader numbers! M J N Colston alone left more than £40m in unpaid creditors (according to the creditors list prepared by the company’s administrators, Deloitte Llp.)
As the outlook for 2013 is “bumping along the bottom”, I think I heard it referred to as a “corrugated sheet” – there will be more well-read stories about unexpected company insolvencies in 2013 in the construction sector.