Collapsed Buckingham Group claims more than double to £256.3m

Administrators of the Buckingham Group have revealed that claims against the collapsed firm have now more than doubled to £256.3m.

In Grant Thornton’s statement of affairs last October, it said that 1,200 creditors were owed £108m. Now claims from 1,375 unsecured creditors have rocketed to £256.3m and GT believes it is unlikely that they will receive any money owed to them. 

There have also been several claims brought forward by former employees, and these tribunals mean this figure could rise. 

HMRC, which is classed as a secondary creditor, has submitted a claim for just under £34m, being £31m for VAT and £2.4m for PAYE arrears. Administrators believe a distribution will be made to HMRC but the amount will be driven by debt realisations.

Midlands businesses were amongst those hit hardest by the news with Birmingham-based Tarmac Cement and Lime owed £2.8m and Walsall’s Fortel Services owed £1.9m. The group was also set to work on Birmingham City’s Tilton and Kop stands as well as Liverpool FC’s £80m Anfield Road stand extension. 

The group’s rail assets and its HS2 contract were sold to Kier for £9.6m, rescuing around 180 jobs.

However, the remaining 446 staff were axed, after the group failed to find buyers for building, civil engineering, demolition, major projects and sport and leisure operations.

GT has now received £5.2m which was left in the £700m turnover group’s bank account with HSBC when it went under.