Devonshire Homes’ trade creditors unlikely to see a penny of £35m owed
Summary
Devonshire Homes collapsed in June with £35.3m owed to unsecured trade creditors, and administrators do not expect any dividend to be paid to them. Only the secured lender, Lloyds, is likely to receive any recovery, while HMRC and former employees’ preferential claims are also unlikely to be repaid in full.
Why it matters
The failure of a housebuilder can leave contractors, subcontractors and consultants exposed to significant bad debt, which is relevant to surveyors involved in development monitoring, valuations and due diligence. It also reflects wider sector pressure that may affect project viability, cashflow risk and counterparty assessment.
Key points
- Administrators say unsecured creditors are unlikely to receive any payment.
- More than £35m is owed to trade creditors, including several regional contractors.
- Lloyds is the only creditor expected to receive any recovery as a secured lender.
- Draft accounts show a sharp fall in turnover and a £9.6m net loss in the latest period.
- Administrators cited increasingly challenging market conditions across the sector.
Organisations:
Devonshire Homes, Alvarez & Marsal, HMRC, Lloyds, Ernst & Young, MJL Contractors, Porteous Groundworks, E&H Drylining & Plastering (South West)
Locations:
Tiverton, Cornwall, Devon, Somerset
Read the original article
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
