Blenheim House Construction - Case Update

Adam Stephens and Kevin Ley of S&W Partners, the joint administrators of Blenheim House Construction, have provided an update on their administration of the company, including their continued investigation into loans received by two unnamed former directors and negotiations over a £1.5 million debt to a client.

Blenheim House Construction, a Surrey-based main contractor with nearly three decades of experience, entered administration in July 2024. At the time, the company’s directors cited the impacts of the COVID-19 pandemic and the war in Ukraine, as well as difficulties experienced on three large office design and build projects in central London which caused a trading loss of nearly £11.7 million. In addition, a client on the Marylebone House project issued a £3.6 million claim against Blenheim House, which the directors believe tarnished the company's reputation and prevented it from securing work.

Since their appointment, the administrators have been attempting to recover debts owed to the company. Earlier this year, they revealed that they were corresponding with two former directors in respect of loans totalling £222,712 made to them “significantly” prior to the administrators’ appointment. The administrators were hopeful that the matter would be concluded prior to their next progress report, but this has not materialised. In their most recent report, the administrators advise that “it has not been possible to progress this matter to its conclusion and further investigations are ongoing”.

The administrators have also been busy negotiating with another client over a £1.5 million debt owing to the client. The terms of the settlement reached with the client included that Blenheim House would cover the client’s expenses on the job as a way to pay back the debt, while the client would pay Blenheim House £500,000. That amount has not been paid, and the administrators are consulting their solicitors Womble Bond Dickinson on how to proceed.

The administrators also provided an update on the proposed sale of Blenheim House’s head office in Chertsey, Surrey. The sale, which had been expected to complete by the end of February 2025, fell through due to a restrictive covenant which affected the purchaser’s future plans for the premises. The property was remarketed by Hilco, who ultimately secured an unconditional offer for the property which is expected to complete in September.

As a result of these outstanding matters, the administration has been extended for another year.  Unsecured creditors are expected to receive a modest dividend. There are no secured creditors.

Read the administrators’ progress report HERE.