Administrators say investigations are ongoing into loans of more than £200,000 to directors of the collapsed firm Blenheim House Construction.
The latest report by administrators at S&W Partners reveals two former directors of Surry-based Blenheim House received loans totalling £222,712 “to purchase shares in the company”.
S&W said that despite discussions with the individuals concerned over the past six months, “it has not been possible to progress this matter to its conclusion”.
“Further investigations are ongoing,” they added.
After 28 years in business, Blenheim House went under in July 2024, a week after being served a winding-up petition by drylining and fit-out subcontractor Radius Construction.
The firm blamed its downfall on a £3.6m claim from its client on the Marylebone House office renovation and new-build development in London.
Blenheim House specialised in refurbishment and fit-out projects in the capital and the South East.
The investigation into the loans, as well as complex negotiations over a £1.5m debt to another client, have led to the administration process being extended by a year to 2026.
Blenheim House had agreed to cover expenses – including security and utility costs – for its employer on a job at St James’s Street, London, as a way to pay back a £1.5m debt, the administrators reported.
The administrators themselves had agreed to carry on with the deal, which also included a £500,000 payment to Blenheim House from the employer.
The employer said it would pay the administrators the £500,000 once it received a VAT refund from HMRC. Although it confirmed it had received the refund, its solicitors “then began querying the debt and requested additional documentation”.
“To date, no funds have been forthcoming, despite the clear terms of the settlement agreement, and I am currently considering how to proceed with this in discussion with my solicitors,” said Adam Stephens, one of the administrators.
The administrators also faced delays in selling off Blenheim House’s head office in Chertsey, Surrey. A sale fell through in February because of restrictions on what the site could be used for, which were agreed when Blenheim House bought the property. They now expect to sell the building in September.
The administrators confirmed they expect to pay a “modest dividend” to Blenheim House’s unsecured creditors – which will include the supply chain. Previously, they had expected unsecured creditors to miss out entirely.
They also confirmed that they had successfully sold a boat owned by Blenheim House. The contractor had received the boat from one of its subsidiaries – Blenheim House Charters – to settle an intercompany debt.
Marine experts hired by the administrators had valued the boat at £135,000. Despite limited interest due to its “very specific design”, it was sold last month for £110,000.
Read More
Joshua Stein