A report from the administrators of St Helens-based Paragon Construction has emerged, showing that the contractor failed owing almost £2m.
Lindsey Cooper and Jeremy Woodside of RSM Restructuring Advisory LLP were appointed joint administrators of Paragon Construction Group Limited on 11 March.
Subsequent to the appointment, the company’s assets were sold to Mason Lord Limited, a company related to Paragon managing director Paul Barrow, in a pre-pack deal.
According to Construction Enquirer, a report from administrator RSM said that Paragon was sold for £15,000. Unsecured creditors were estimated to be owed £1.8m, and Mason Lord has agreed to pay further sums, depending on if it is successful with a £6.7m contract claim against a former Paragon client.
Of the 40 staff at Paragon, 10 were made redundant while 30 were retained by the new company.
Paragon Construction is understood to have been established 35 years ago and to have had 100 staff in its heyday, with a turnover of £11m when it went into administration.
Recent clients included Bolton and Stockport Councils, Arena Housing, Ministry of Defence, Sport England, Football Foundation and NHS Trust.
There was no comment from RSM at the time of publication.