A construction company has plunged into administration. Leeds-based Torsion Construction, operating since 2015, has filed a notice of intention to appoint administrators after suffering liquidity issues and commercial problems, Construction News reported.
The filing was issued on July 20 and gave the contractor temporary legal protection from creditor action. Torsion also said several factors, including the construction market conditions, affected its liquidity in the last two years.
In a statement quoted by Construction News, a spokesperson said: “This decision has not been taken lightly. It follows a prolonged period of exceptionally challenging trading conditions across the UK construction sector, together with a number of commercial events that have materially impacted the liquidity of the construction business.”
The Daily Express has contacted Torsion for comments.
According to construction intelligence provider Glenigan, there were 54 listed projects associated with Torsion Group at the time of the filing, Construction News also reported. These included a £90m student accommodation development in Nottingham for Vita Group, a £90m residential and commercial scheme in Leeds for Citylife, and other projects such as a £65m, 300-flat development in Leeds for Flax Place Leeds.
It is understood the administration process related solely to Torsion Construction, and Torsion Care, Torsion Homes, and Torsion Developments continued to operate.
The company said it was working with investors, funders and professional advisers on several liquidity initiatives. After filing the notice of intention, it said: “Our immediate priorities are to support our employees, maintain continuity across live projects wherever possible, work constructively with our clients, funders and supply chain partners, and achieve the best possible outcome for all stakeholders,” Construction News reported.
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