Failed construction company owed over £1m to creditors when it collapsed

The collapse of a key supplier and delays to materials orders were instrumental in Midlands construction company calling in administrators, new documents reveal.

Enrok Construction, which had offices in Ednaston, Derbyshire and Stafford, called in administrators from Interpath on January 23 and immediately ceased to trade.

Interpath says that any returns to unsecured creditors is “highly unlikely”. The firm owed over £1m to trade creditors when it collapsed.

When he was appointed in January, Tim Bateson, director at Interpath Advisory and joint administrator, said: “The building and construction sector continues to face a number of headwinds, including persistent cost inflation and material shortages which have had the effect of eroding the thin margins that are so often seen in competitive fixed price contracts.”

Enrok has recently built 51 residential units in the West Midlands, including a development of 19 affordable homes for Citizen on Wellington Road in Handsworth.

The company had also worked on a £4m medical centre in Nuneaton – as well as the Glassworks residential scheme in Nottingham.