Merit Holdings fell into administration last November. However, administrators Interpath, which took control of the firm, revealed the scale of the debt earlier this year, stating that it was « highly unlikely » that unsecured creditors would receive any payment for outstanding invoices.
The Northumberland-based company was founded by former chief executive Tony Wells and had become a leading name in the offsite and modular construction sector.
Its most recent accounts showed it was doing well financially, with filed results for the year ending June 30, 2025 showing turnover of £79.9 million and pre-tax profit of £4.3 million.
Unfortunately, its collapse resulted in hundreds of employees being made redundant, as the business employed 284 people at the time.
The administrator’s report, which followed just a few months later, revealed that a “substantial disposal of assets” was agreed with a connected party for £396,000. The buyer was a newly formed company, Merit Industrialised Construction Ltd.
According to Companies House records, Kirsty Wells, Matthew McGrady and David Wilkinson, who were directors of Merit Holdings, were also directors of Merit Industrialised Construction Ltd at the time of the purchase.
In addition, records show that Kirsty Wells incorporated two other new companies in November, Blaze Technology and Newco MHL Ltd, around the same time the administration process was under way.
Interpath’s report does not suggest wrongdoing, but it shows the limited prospects for creditors, with unsecured suppliers and subcontractors facing significant losses.
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