M&E contractor goes bust owing £13.5m

Building services provider, JS Wright & Co owed over £13m to other businesses when it went into administration, according to recent reports.

Administrators Ben Jones and Rajnesh Mittal from FRP Advisory revealed that as of March 17, trade creditors were owed £13.5m, with that amount “expected to rise as more invoices and claims come in.”

The administrators noted that they did not expect to have any money available to pay these companies.

150 jobs were lost back in February this year when the company collapsed into administration. 

Founded in 1890, JS Wright & Co specialised in heating, ventilation, air conditioning (HVAC), plumbing, and electrical systems for various sectors across the UK.

Its sister company, Wright Maintenance, was established in 2019 and focused on maintenance services for landlords and care providers.

JS Wright & Co was a subcontractor for Grenfell Tower’s refurbishment in 2014, responsible for mechanical and electrical work.

Headquartered in Birmingham, with additional offices in London and Bristol, the company transitioned to employee ownership in 2021.

The administrators stated that the company faced financial struggles due to delays in projects, payments, and a drop in demand, leading to cash flow problems.

Directors ultimately concluded that the company couldn’t continue and decided to wind down its operations.