Contractors working in Tolent’s supply chain could be out of pocket to the tune of £50m, industry organisations believe.
The Team Valley construction group fell into administration on Monday, citing huge losses on its biggest ever contract – the £85.5m Milburngate development in Durham – for triggering the chain of events that led to its failure. Interpath Advisory has been appointed as administrators of Tolent Plc and its subsidiaries, with work under way to keep sites going and seek solutions for the companies’ assets.
The Gateshead group’s failure, which led to the immediate redundancies of 313 staff, came days after Killingworth based Metnor Construction filed a notice of intention to appoint administrators. Business advisors have yet to be officially appointed at the company. And as the repercussions of Tolent and Metnor’s collapse sink in, industry organisations have outlined support they are offering to affected staff, while also counting up the potential cost to smaller businesses within the North East supply chain.
