MOST creditors of a building group whose collapse sent shockwaves through the local industry last year are unlikely to see any money.

All 107 jobs at Brymor Construction Ltd were rescued last summer when its business and assets were sold by administrators to Winchester-based Portchester Equity.

A report by administrators later revealed that Brymor Construction and Brymor Group – whose work included a landmark development on Poole Quay – owed around £16million to unsecured creditors, who were unlikely to see any of their money. The creditors included a string of Dorset companies, some of which were owed tens of thousands of pounds.

Brymor was working on the Vespasian development on Poole Quay for local developer Fortitudo at the time of its collapse. The work was eventually picked up by its successor, with compensation negotaited for subcontractors who had gone unpaid.

Brymor, based at Denmead in Hampshire, also built Southampton’s Horizon Cruise terminal and had the contract for Southampton FC’s new gym at its Marchwood training ground.

In their latest report, joint administrator Michael Magnay of Alvarez & Marsal said Brymor Construction Ltd and parent company Brymor Group owed £2.85m between them to Santander, whose lending was secured against the companies’ assets.

The administrators have so far distributed £1.7m to Santander, according to the report, which covers the period from July last year to January 2023. 

Mr Magnay reported that it was “highly unlikely” there would be any money for unsecured creditors of either business.

Brymor was working on around 13 sites at the time it went into administration.

The property assets of Brymor Group were sold for £1.75m, while the business and assets of Brymor Construction Ltd were sold for an initial £400,000.

In previous reports, the administrators said Brymor had traded profitably in the past but “experienced difficult trading conditions due to the impact of Brexit, Covid-19 and cost inflation in the construction centre”.

“These recent difficult trading conditions resulted in net losses being generated by the group since 2020,” they reported last year.

Project delays in the second half of 2021 left the group with more cash going out than coming in. Santander refused to allow it more borrowing and it was unable to pay subcontractors and suppliers. No staff were paid between June 1, 2022, and administrators being appointed on July 8.

Gary Lee, regional chair of the restructuring and insolvency industry body R3, warned last year that a number of high profile administrations in the building sector “carry the risk of contagion” to the wider economy.