UK construction firm plunged into administration with £17M unpaid bills

A UK construction company that reported multimillion-pound profits at the beginning of the year has collapsed into administration, leaving £17.4 million in unpaid bills and hundreds of workers made redundant.

Merit Holdings fell into administration last November. However, administrators Interpath, which took control of the firm, revealed the scale of the debt earlier this year, stating that it was "highly unlikely" that unsecured creditors would receive any payment for outstanding invoices.

The Northumberland-based company was founded by former chief executive Tony Wells and had become a leading name in the offsite and modular construction sector.

Its most recent accounts showed it was doing well financially, with filed results for the year ending June 30, 2025 showing turnover of £79.9 million and pre-tax profit of £4.3 million.

Unfortunately, its collapse resulted in hundreds of employees being made redundant, as the business employed 284 people at the time.