Trade creditors of a collapsed electrical contractor are unlikely to recover any of the money the firm owed, administrators have said.
TNA Electrical, which appointed administrators from Leonard Curtis in February, left its supply chain out of pocket by £6.9m, according to documents published on 12 April.
The figure is based on Leonard Curtis’ estimates, as TNA has not yet filed its own statement of affairs.
The £30m-turnover firm’s 29 employees are likely to receive unpaid wages, holiday pay and certain pension contributions, worth £31,000. A £130,000 VAT bill to HMRC may also be paid, administrators said.
Administrators said they were also unlikely to recover money to pay back business loans the firm had taken out.
These loans included £360,000 from Iwoca, £142,000 from Funding Circle, £96,000 from Merchant Money and £50,000 from Capital on Tap.
The 15 year-old electrical installation firm appointed joint administrators Conrad Beighton and Liz Welch from Leonard Curtis in February.
In its last year of trading, ending 31 January 2024, the firm made a pre-tax loss of £2.1m.
The firm made “substantial losses” on fixed-price lump sum contracts it entered in 2022 and incurred bad debt from contractor insolvencies, according to the new report.
At the time of the firm’s collapse, Leonard Curtis said the contractor had “recently suffered non-payment in relation to one of its largest contracts, creating cashflow challenges”.
As a result, insurers lost confidence and withdrew insured debt, the new documents revealed.
Beighton decided to apply to place the company in administration on 18 February, after determining the company was unable to pay its debts.
TNA, set up by brothers Andrew and Neil Jones in 2009, worked for clients including the London School of Commerce, Warwick Business School and Teva Pharmaceuticals.