Blenheim House claims jump to £60.6M

Adam Stephens and Kevin Ley of S&W Partners, the joint administrators of Blenheim House Construction, have provided a further update on their administration of the company, including the completion of several asset sales and a sharp increase in unsecured creditor claims since the company’s collapse.

Blenheim House entered administration in July 2024 after suffering heavy losses on several central London office design-and-build projects. The company’s directors attributed the collapse to the lingering effects of the Covid-19 pandemic, cost pressures linked to the war in Ukraine, and difficulties encountered on three large office developments which generated trading losses of nearly £11.7 million. The company also faced a £3.6 million claim from a client relating to the Marylebone House project, which management said damaged its reputation and hindered its ability to secure further work.

Since we last wrote about this matter in September 2025, the company’s former head office in Chertsey, Surrey has been sold. The property was remarketed after an earlier transaction fell through due to a restrictive covenant affecting the purchaser’s plans. The administrators report that the building ultimately sold in October 2025 for £700,000, generating net proceeds of approximately £647,831 for the estate after agents’ fees, legal costs and utilities were deducted.

The administrators have also continued efforts to recover outstanding trade receivables. Work undertaken by quantity surveyors has resulted in the recovery of approximately £650,000, although several claims remain unresolved and negotiations continue with certain project counterparties. Among the matters still under discussion are amounts relating to the Kintech project and a dispute connected with a development at St James Street.

Investigations into loans previously made to two former directors remain ongoing. The loans, totaling £222,712, were advanced prior to the administrators’ appointment. During the reporting period the directors proposed a settlement intended to avoid the costs of litigation, though the administrators indicated they were seeking further legal advice before determining whether to accept the offer.

The administrators say the scale of unsecured creditor claims has increased significantly since the administration began. While the company’s Statement of Affairs estimated unsecured claims at roughly £19 million, proofs of debt received to date total approximately £60.6 million. The increase is largely attributable to counterclaims submitted by project counterparties and claims filed by insurers that were not reflected in the directors’ original estimate, and most claims have yet to be formally adjudicated.

From a priority standpoint, the company had no secured creditors. Ordinary preferential creditors were paid in full in April 2025, while HMRC has submitted a secondary preferential claim exceeding £2 million in respect of PAYE, National Insurance contributions and construction industry scheme deductions.

The administrators say investigations into the company’s affairs remain ongoing and that further recoveries may still be pursued. The ultimate dividend available to unsecured creditors will depend on the outcome of those investigations and the resolution of outstanding claims.

Read the administrators’ latest progress report here.