{"id":878930,"date":"2025-12-19T23:16:57","date_gmt":"2025-12-20T05:16:57","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/12\/19\/little-hope-for-supply-chain-creditors-of-collapsed-modular-firm\/"},"modified":"2025-12-19T23:16:57","modified_gmt":"2025-12-20T05:16:57","slug":"little-hope-for-supply-chain-creditors-of-collapsed-modular-firm","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/12\/19\/little-hope-for-supply-chain-creditors-of-collapsed-modular-firm\/","title":{"rendered":"Little hope for supply-chain creditors of collapsed modular firm"},"content":{"rendered":"
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\"Money.jpg\"<\/p>\n

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Subcontractors of Elements Europe will only receive a fraction of the \u00a38.7m they were owed when the modular construction company entered administration last June.<\/p>\n

A progress report by Interpath joint administrators Samuel Birchall and Stephen Absolom showed that they have secured just over \u00a35m from the sale of company assets.<\/p>\n

This total included \u00a32.5m from Elements\u2019 bank accounts and \u00a31.5m from the sale of its Camp Hill project stock and modules to CMC Facilities Management.<\/p>\n

GS Real Estate Development London purchased the firm\u2019s contract to build a 23-storey hotel and office complex in east London, where Elements was the main contractor, for \u00a3100,000.<\/p>\n

After paying \u00a33.6m to the administrators for their services and \u00a3600,000 to preferential creditors \u2013 including employees and HMRC \u2013 only \u00a31.4m will remain for unsecured creditors such as supply-chain subcontractors.<\/p>\n

At the time of its collapse<\/a>, Elements Europe owed \u00a38.7m to more than 200 suppliers.<\/p>\n

The collapsed contractor\u2019s statement of affairs also showed a \u00a313.6m debt to \u201cother creditors\u201d and \u00a371.8m in shareholder loans, Interpath said.<\/p>\n

More funds may be added once the company recovers amounts owed by debtors, pre\u2011payments and retention reserves, estimated at \u00a311.4m in the statement of affairs.<\/p>\n

All 217 staff members have been made redundant, including the 19 employees who were retained to assist the administrators.<\/p>\n

Former employees have lodged tribunal claims over the lack of consultation on their redundancies.<\/p>\n

The employment tribunal hearing is expected in April\u202f2026, after which any protective awards will be drawn from the ordinary preferential creditors\u2019 pot.<\/p>\n

Based on current estimates, the administrators said they expect employees and HMRC secondary preferential creditors to receive all the money they are owed.<\/p>\n

\u201cWe anticipate that unsecured creditors will receive a dividend, paid during the creditors\u2019 voluntary liquidation,\u201d Birchall and Absolom added.<\/p>\n

\u201cThe timing and quantum of the distribution is currently uncertain.\u201d<\/p>\n

Elements Europe filed for administration in June after it suffered losses of \u00a380.6m over the past three years, due to cost overruns and water ingress defects on its projects.<\/p>\n

The Telford-based company was founded in 2005 by the Pickstock Group.<\/p>\n

It specialised in modular and bathroom pod solutions for the residential, hotel, student accommodation and healthcare sectors.<\/p>\n

In 2020, South Korean construction giant GS Engineering & Construction became the majority owner.<\/p>\n

Before it collapsed, Elements Europe acted as main contractor for two projects in east London and Birmingham.<\/p>\n

The firm posted a pre-tax loss of \u00a329.5m from turnover of \u00a342m in its most recent annual accounts for the year to 31 December 2023.<\/p>\n<\/div>\n<\/div>\n

Read More<\/a>
\n Contributor<\/p>\n","protected":false},"excerpt":{"rendered":"

Subcontractors of Elements Europe will only receive a fraction of the \u00a38.7m they were owed when the modular construction company entered administration last June. A progress report by Interpath joint administrators Samuel Birchall and Stephen Absolom showed that they have secured just over \u00a35m from the sale of company assets. This total included \u00a32.5m from<\/p>\n","protected":false},"author":1,"featured_media":878931,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1502,93806],"tags":[],"class_list":{"0":"post-878930","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-little","8":"category-supply-chain"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/878930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=878930"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/878930\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/878931"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=878930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=878930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=878930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}