HE Simm creditors brace for disappointment as administration payout ‘unlikely’

Administrators of UK-based mechanical and electrical (M&E) engineering firm HE Simm have proposed exiting the administration via dissolution, warning creditors they are “unlikely” to receive a dividend.

According to the latest progress report filed by joint administrators Forvis Mazars, unsecured creditors are owed a total of £21.3 million, including £18.8 million to trade and expense creditors and £2.2 million in employee claims.

Claims received so far total £17.9 million from 130 creditors.

Founded in 1948, the family-owned firm was one of Liverpool’s longest-established businesses. 

Its collapse in September 2025 led to 127 redundancies, with chief executive officer Gareth Simm, grandson of founder Ernie Simm, citing tight industry margins and difficult market conditions.

Despite returning to post-pandemic growth with major projects including the Riu Hotel and Ebury Bridge Apartments, HE Simm was hit by rising costs, Ukraine war-related supply chain disruption, labour shortages, and project delays.

Heavy losses on key projects – totalling £20 million – strained management, created cash flow pressures, and ultimately undermined financial stability.

The challenges were described as “one of the most difficult trading environments in the company’s history”, leading to a restructure, including its exit from the London market, and impacted further by the collapse of a “key client”.

Administrators are now focused on realising construction debts, with £11.8 million identified as receivable and £120,858 collected so far from two projects, alongside recoveries from the company’s bank account, deposits, tax refunds, and further liquidating assets.

However, they have stated it is “unlikely” that unsecured creditors will see a return due to “insufficient funds”.

Efforts to sell the business as a going concern have been unsuccessful, with limited interest shown in purchasing customer contracts and tangible assets.

In total, 28 expressions of interest were received, but only two parties remained serious contenders, with one ultimately withdrawing and the remaining contacted to “further explore their interest”.

Administrators expect the process to be extended to realise assets and settle preferential claims, with potential dissolution once these are settled.

Was this interesting? Try: EXCLUSIVE: Premier Modular – On a trajectory of ‘opportunity’

If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk