Leeds-based Torsion Construction has filed a notice of intention to appoint administrators after suffering liquidity issues and commercial problems, as reported by Construction News. The filing was issued on July 20, giving the contractor temporary legal protection from creditor action.
Challenging market conditions
The company said several factors, including construction market conditions, affected its liquidity over the last two years. A spokesperson quoted by Construction News stated: “This decision has not been taken lightly. It follows a prolonged period of exceptionally challenging trading conditions across the UK construction sector, together with a number of commercial events that have materially impacted the liquidity of the construction business.”
Projects and ongoing operations
According to construction intelligence provider Glenigan, there were 54 listed projects associated with Torsion Group at the time of the filing. These included a £90m student accommodation development in Nottingham for Vita Group, a £90m residential and commercial scheme in Leeds for Citylife, and a £65m, 300-flat development in Leeds for Flax Place Leeds.
The administration process relates solely to Torsion Construction, while Torsion Care, Torsion Homes, and Torsion Developments continue to operate. The company said it was working with investors, funders and professional advisers on several liquidity initiatives.
