Tuesday, April 21, 2020

Over 4,000 British Construction Companies Could File Bankruptcy

2020 will go down as possibly the worst for thousands of construction companies in England. From plumbers, electricians and masons to huge development organizations, bankruptcy or “administration” as the British call it, will be the only avenue open to them.

In the first quarter of 2020, only 90 new bankruptcies were filed but this was pre-COVID-19. Filings are expected to go up dramatically each remaining quarter of the year and are projected to reach 4,000 filings.

Aside from the companies that are filing, thousands of workers will become unemployed and billions of dollars in projects already underway across England will either be slowed as the company enters receivership or stopped completely.

Many of those projects include affordable housing which will now see their timetables for completion pushed back a year or more. Others will remain uncompleted for years.

If England is any measure of what could happen in the US, look for thousands of small, medium and large construction firms to close their doors forever.

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