Merit Group enters administration after cash flow strain and HMRC petition halt rescue efforts

Merit Group Services Limited, Merit Health Limited, and Merit Holdings Limited have entered administration after a prolonged period of contract delays, liquidity strain, and an unresolved winding up petition from HMRC derailed attempts to secure new funding or a sale.

Joint administrators James Lumb and William Wright of Interpath Advisory were appointed on 17 and 18 November and immediately began winding down operations, confirming that the majority of the group’s 340 employees have been made redundant.

Merit, based in Northumberland, had built a strong position in offsite construction and modular solutions, but rising input costs, high interest rates, and softer demand on major projects intensified pressure on its order book. The administrators are reviewing options for customers and creditors while prioritising support for affected staff, including guidance on Redundancy Payments Service claims, as they assess whether any part of the business can be preserved or transferred.