Plymouth flooring company goes bankrupt with just £200 in the bank

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Karl Thomas Flooring Ltd is the latest construction company to become insolvent in Plymouth

A flooring specialist has become the latest construction company to fail in Plymouth. Karl Thomas Flooring Ltd, based in Crownhill, has gone into liquidation with debts of £64,857 which are unlikely to be paid.

The independent flooring and wallcovering company, which operated across the UK from its base in Plymouth, was voluntarily dissolved this month and appointed liquidators at business consultancy Begbies Traynor, Exeter. Documents submitted to Companies House revealed the company only had £200 in its bank account and was available as an asset.

But the company owed the tax authorities over £6,000 in unpaid VAT and over £9,000 in corporation tax. She also owed her bank, Santander UK Plc, £42,488. Liquidators said there would likely be a deficit of £64,857 for creditors.

Commercial creditors are short by £7,307. These include Mayers Accountants, in Stonehouse, which owed £1,920, and Coventry-based company Carpet and Flooring (Trading) Ltd, which owed £4,399.

The sole shareholder and director of Karl Thomas Flooring is Karl Thomas, 41, of Crownhill. He was previously a director of SJBK Contractors Ltd, which was dissolved in 2020.

The company described itself on the internet as: “An independent flooring company covering the whole of the UK”. He said: “We are qualified and experienced in all domestic and commercial flooring. We have worked closely with large organizations and we work well under pressure and meet deadlines. »

On the MyBuilder.com website, it says, “All flooring work is being undertaken, from latexing subfloors to laying New York LVT vinyl. We do all carpet work. I have 18 years of experience in the business.

PlymouthLive attempted to contact the company without success. Its accounts are overdue and there was an attempt to have it compulsorily de-listed from Companies House earlier in 2022. This often happens when accounts are not filed. The action was suspended in June, however, and two months later it was decided to liquidate the company.

The most recent accounts filed by Karl Thomas Flooring Ltd, for the year to the end of June 2020, showed it had retained earnings, a measure of profitability, of just £77. The company was incorporated in 2016.

Karl Thomas Flooring Ltd is just the latest in a string of companies in the construction industry to go bankrupt as the sector grapples with rising labor and material costs and the end of government Covid support. Recently, Highgrove Property Services Ltd, which operated out of an office building in North Hill, went into liquidation due to money from its bank, the tax authorities and several small construction companies in the town. His total debts stood at £1.3m and they are unlikely to be paid.

This year Neal Stoneman Scaffolding Ltd also went bankrupt owing almost £1.5m which is unlikely to be paid. Complete Building Developments Ltd also went into liquidation with £200,000 in debt and without enough cash to pay employees, its own manager or a repayment loan of £44,000.

Over the past year Plymouth has also lost Urbn Construction, which left over £3.5million in debt unpaid, and Eliot Design and Build, which had no money to pay debts of nearly £4 million. Huge Midas Group, headquartered in Exeter but active in Plymouth, also went into administration with more than £70million owed by the business, including cash to chain businesses supply from Plymouth. And South West contractor Henry W Pollard and Sons Ltd, also went into liquidation, leaving debts of over £10m and buildings in Plymouth unfinished.

Meanwhile, the eight-storey Mayflower Court tower block in Millbay, being built for the charity Abbeyfield Society, saw no work for two years after Wales-headquartered WRW Construction either fell into administration in July 2021, citing “significant financial stress”.

Figures from the Insolvency Service show that the construction industry is the business sector most affected by insolvencies with more than 3,200 last year. This figure is almost double what it was in 2020/21 and eclipses the number of motor trade and accommodation companies in bankruptcy, the two sectors most affected next.

Nationwide, 15 construction companies were placed in administration in June 2022, more than double the number that went bankrupt in June 2021. The first half of the year saw 115 companies collapse, including 67 in the first three months and 48 in the second trimester. In the first half of 2021, only 72 companies filed a request for administration.

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