The construction sector continues to be a bellwether for the economic climate.
With the news that the Buckingham Group has halted trading, the current challenging economic environment is ensuring that construction failures continue to make headlines. Last week, the major contractor that was working on the expansion of Liverpool FC’s Anfield Road stand has confirmed that it has filed a notice to appoint administrators.
The £700m turnover Buckinghamshire Group employing over 600 people stated that it is “unable to continue trading at this current time” and explained that their crisis was due to rapidly escalating contract losses and a sharp reduction in liquidity.
This unforeseen failure will have left a long list of creditors being owed millions of pounds. Fortunately, a fair slice of this will be picked up by the credit insurers, thereby protecting policyholders from potential liquidity and financing issues as a consequence of a significant bad debt.