An update filed at Companies House by liquidator Quantuma Advisory revealed the scale of the debts at the business when it collapsed in April.
Unsecured trade creditors have been left holding unpaid invoices totalling £4.3m while Quantum also owed its 24 staff £194,000 in unpaid wages.
The firm had been in business since 2002 working on new build and refurbishment projects across the country.
One local rival said: “They were a long standing company and had a decent name in the industry.
“But is looks like they failed due to silly profit margins and inflation. Margins at 2-4% are a killer in our industry, and as much as people are blaming covid and inflation for firms going under, the big issue is construction margins, especially when you look at the risks involved.”
Today, over 150 workers in the North East of England have been left unemployed after the closure of a construction firm.
The demise of Newcastle based Quantum Construction Ltd. has reportedly cost suppliers £4.3 million, leaving a bitter and painful legacy. The company, which was an established provider of turnkey refurbishment and fit-out services, had become a key pillar of the local supply chain within the region.
Founded in 2005, Quantum Construction quickly grew to become a prominent force within the construction industry. Despite it’s success, recent years have seen a downturn in turnover for the company, prompting a restructuring of operations. This proved to be out of their control, and by February 2017 the company fold was unfortunately announced.
Now, suppliers to the former contractor have spoken out about their financial losses, claiming that the Newcastle-based company never settled their contractual debts. Such news is particularly concerning for smaller firms, for whom the knock-on effect of the unpaid debt could prove to be catastrophic.
The insolvency marks a bitter end to a long-standing institution within the North East. Questions will undoubtedly be asked of the directors, as the community and supply chain continue to lament the loss of a once-respected establishment. Indeed, the true cost of such closure goes far beyond the immediate financial implications.
Quantum Construction was a celebrated part of the region’s history, and the profound effect of it’s downsizing will be felt for generations to come.