Administrators handling the fallout from Readie Construction’s collapse have recovered close to £1 million in outstanding debts but say unsecured trade creditors are unlikely to see any returns.
The latest update from administrator Begbies Traynor reveals an additional £312,424 was collected from contract debts between February and August 2025, adding to £654,379 recovered earlier this year.
This brings total recoveries since Begbies’ appointment to £966,803.
Projected total recoveries now range between £1.5 million and £3.9 million, a downward revision from the previous £4.2 million estimate.
Despite these efforts, unsecured creditors, such as subcontractors owed £18.7 million and other suppliers owed £6 million, are expected to receive no payout.
Although Readie had no secured creditors at the time of its collapse in February 2024, preferential creditors like former employees, owed £494,400 in unpaid wages and holiday pay, are likely to receive dividends.
HMRC, as a secondary preferential creditor owed £8 million, is also expected to be paid following preferential creditor settlements.
In total, there are 444 creditors involved.
SPONSORED CONTENT by CHIME
“Having an electronic platform has improved timekeeping across the workforce and provided real-time accurate reporting.” Russell O’Dwyer – Engineering Director, Timeless Building Services. Read More
Administrators continue to pursue contract debts, in addition to £4.7 million owed by Readie’s parent company, Readie Management, which was liquidated earlier this year.
Based in Romford, the 260-strong contractor transitioned to an Employee Owned Trust (EOT) in 2021.
Specialising in new builds, refurbishments, and fit-outs, Readie cited inflation, fixed-price contract costs, procurement delays, subcontractor failures, and difficulties securing trade credit insurance and bonds as reasons for its collapse.
Its administration period has been extended until February 2026 as recovery efforts continue.
Was this interesting? Try: Residential construction downturn offset by 120% uptick in office starts amid market stagnation
If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.
Notice: JavaScript is required for this content.