Collapsed Lane End owed £13m
Increases in supply costs and delays due to the Covid-19 pandemic rendered the Warrington-based contractor’s pre-pandemic contracts unprofitable and unviable, according to administrator Quantuma Advisory.
The administrator’s report for Lane End Developments Construction, released last week, described a company unable to recover from the pandemic’s aftermath, despite prolonged talks with a potential overseas investor. This potential deal could still be struck as negotiations are ongoing.
Lane End was formed in January 2016 and has delivered more than 1,100 homes across the North West. The company’s net profits plummeted from £397,480 in 2020 to $177,479 in 2022.
This year, Lane End was not able to pay its bills, including employee wages.
When administrators were appointed in April, Lane End owed £13m to creditors, of which £12m was owed to suppliers. The remaining is owed to the company’s 112 now-redundant employees.
The full administration report is available on Companies House.
Upon its collapse, Lane End was working on various North West projects, including 77 homes in Llandudno with ClwydAlyn and 60 homes in Wigan with Torus. Lane End was also working with Onward Homes on 130 homes in Basford East and 220 homes in Helsby.
When asked about the schemes’ futures shortly after Lane End entered administration, an Onward Homes spokesperson said: “Onward remains committed to delivering for local people at our development sites in Basford East and Helsby. Work is underway to ensure we deliver quality new homes to meet the variety of local need, including homes for affordable rent and shared ownership.”