Corbyn Construction enters administration leaving £4.4 million debt

Corbyn Construction's financial troubles reveal deep impact on suppliers and staff.

Corbyn Construction owes £4.4 million to suppliers

Corbyn Construction, a London-based groundworks company, has entered administration with £4.4 million owed to subcontractors and suppliers. The company's recent financial disclosure, managed by administrator FRP Advisory, shows Corbyn also owed £1.6 million to HMRC and £2.5 million to NatWest. Despite a turnover of £32.8 million with a profit of £436,000 last year, Corbyn faced severe cash flow issues leading to the inability to pay its creditors. Only eight staff were directly employed, but numerous self-employed workers are also affected by unpaid wages. FRP advised that unpaid invoices may not be compensated.

The situation at Corbyn Construction highlights the vulnerabilities within the construction sector, where even profitable companies can fail due to cash flow problems. With such a significant amount of debt, this case may inspire caution among subcontractors and investors alike, potentially affecting future partnerships. The collapse of a long-standing firm like Corbyn can also raise concerns about job security in the industry as many self-employed workers are left without payments. The financial strain on suppliers could lead to broader implications in the market.

Highlights

As the industry faces more financial scrutiny, such events may shake confidence among small contractors.