Finance

Henry Construction Collapse: Administrators Demand £31.3m from Directors and Family

Administrators for the collapsed Henry Construction Projects are pursuing claims totalling over £31 million from its directors and related parties, according to a report published on 10 July 2025. The report, prepared by joint administrators David Hudson and Geoffrey Rowley of FRP Advisory Trading, outlines the financial difficulties faced by the London-based contractor, which entered administration in June 2023.

The investigation by the administrators has identified a large number of potential creditors and numerous supplier claims, highlighting the significant impact of the company’s insolvency. Henry Construction Projects was previously ranked among the top UK contractors, with reported turnover exceeding £400 million in 2022, but faced severe liquidity challenges leading to its collapse.

The report raises concerns about certain financial transactions made in the company’s final years, including payments related to personal tax liabilities of individuals associated with the Henry family. It also notes outstanding loans owed to the company by former directors. Administrators are seeking to recover funds from companies linked to the Henry family and have initiated legal proceedings at the High Court against several former directors and family members.

Following the collapse, Henry Construction Projects made a number of employees redundant and left preferential creditors with outstanding claims. The company’s parent, Henry Group Holdings Ltd, entered liquidation later in 2023.

The administrators have secured an extension to continue managing the company’s affairs, indicating ongoing efforts to maximise returns for creditors. Legal actions currently underway reflect their commitment to recovering assets and addressing alleged mismanagement.

The case underscores the challenges facing even well-established firms when financial difficulties arise. Stakeholders in the construction industry and beyond are closely monitoring developments as the administration process continues.

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