A major Midlands construction company is set to be formally wound up after administrators filed their final report, marking the end of the road for the family-run business.
Final Update from Administrators
Tim Bateson and Ryan Grant of Interpath Advisory were appointed as joint administrators of Enrok Construction Ltd on 23 January 2024. The company, which operated from offices in Derbyshire and Staffordshire, specialised in the design, build, and project management of both residential and commercial developments.
Causes of Collapse and Creditor Payments
The business encountered severe difficulties triggered by a dual crisis. The insolvency of a key supplier was a significant blow, compounded by delays to several contracts which strangled the company's cash flow. In their conclusive progress report, the administrators confirmed that ordinary preferential creditors were paid in full, a sum totalling £5,471.
A first and final dividend of 34.8p in the pound was also distributed to secondary preferential creditors. However, the administrators stated clearly that there were insufficient funds to make any payment to unsecured creditors. Enrok Construction's collapse left it owing more than £1 million to trade creditors.
Formal Dissolution Process Begins
The final chapter of the administration is now underway. The administrators have filed the necessary final progress report with the Registrar of Companies, along with a required notice. Once these documents are officially registered, the administration period will conclude. The company is then due to be dissolved three months after that point, removing it from the Companies House register.
This outcome highlights the fragile nature of construction sector supply chains and the devastating ripple effect that the failure of a major supplier can have on otherwise viable businesses.
