Newcastle-based contractor Metnor has entered administration, with 80 staff made redundant.
Steven Ross and Allan Kelly of advisory firm FRP were appointed as joint administrators to the company on Tuesday (21 February).
Metnor filed a notice of intent to appoint administrators earlier this month, as did its sister firm, M&E specialist Norstead.
The company has worked across a range of sectors including leisure, healthcare and student accommodation, and according to its website worked on jobs ranging up to £50m.
FRP said Metnor had “suffered significant financial challenges” in recent months because of contract losses and “the immense pressure on profit margins from rising input, labour and raw material prices and supply issues against fixed-price contracts”.
In 2021, the firm was working on a £50m build-to-rent scheme in Birmingham when its client, the High Street Group, went into administration owing up to £200m to creditors.
Metnor’s ongoing work before its collapse included a £17m job as principal contractor on an 8,000 square metre training centre at Cramlington Hospital for Northumbria Healthcare NHS Foundation Trust. The project was due to open in the autumn.
Metnor’s 80 staff were all made redundant before administrators were appointed, when the business also ceased trading. The administrators said they would now focus on winding down the business, realising assets and engaging with creditors.
Ross said: “Rapid inflation is causing havoc on the profit margins of businesses across the economy. Metnor Construction was a long-established and major main North East building contractor that has delivered on significant projects across the UK but wasn’t immune to the impact of rising costs, which ultimately led to its insolvency.
“Regrettably, the business is unable to continue trading and sustain the workforce. We’re working with impacted staff to make applications to the redundancy payments services and maximise recoveries from the assets.”
