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Construction firm Cardy had failed to pay several subcontractors for months before it filed for administration, according to businesses hoping to recover their losses.
The Canterbury-based contractor had endured a strained relationship with many of its partner businesses, with some firms saying its troubles have lasted at least 18 months.
One subcontractor, who wished to remain anonymous, said his firm has worked with Cardy for more than 20 years but is owed more than £200k for jobs carried out as long as 12 months ago.
He said: “This is nothing to do with Brexit. The directors of Cardy had boasted confirmed orders worth in the region of £100 million for the year ahead.
"Cardy have been struggling for over a year now with their payment terms getting worse over the same period. It hasn’t happened over night.
“It’s a shame. I know a lot of the lads and a lot of subcontractors are reliant on their business.
"It’s terrible, a lot of the sub-contractors involved will struggle to continue with the losses that will be incurred .”
Another subcontractor, who also wished to remain anonymous, said: “They haven’t been paying subcontractors on time for years.
“Whilst it’s easy to lay the blame at Brexit’s door, in truth the industry has remained fragile, never truly recovering from the aftermath of the 2008 recession..." - Ella Brocklebank, Kent Construction Focus Group
“Over the last 18 months the periods have got even more extended as they have been breaking their own order conditions on payments.
“Personally I think they had insufficient surveying staff to process changes and extras on jobs, so money they were owed wasn’t collected efficiently.”
Cardy Construction Limited, founded in 1946, filed a notice of intent to appoint administrators on Monday.
Its fall comes despite boosting turnover by more than £25 million to £67.6 million in the year to March 2015, helped by contracts with Rolls Royce, BMW and Johnson and Johnson.
In its latest accounts, it said it had an order book worth £60 million.
Ella Brocklebank, co-chair of Kent Construction Focus Group, said its problems run deeper than any slowdown caused by uncertainty over the EU vote.
She said: “Whilst it’s easy to lay the blame at Brexit’s door, in truth the industry has remained fragile, never truly recovering from the aftermath of the 2008 recession, with margins so tightly squeezed amidst a sea of unsustainable pricing.
“Such news really amplifies the importance of localism and urging clients not to be lured into a false economy of lowest price equalling the best value.
“We must, must, must continue to nurture local business relations and ensure local trading with strong Kent-based supply chains, keeping as much money within the local pot as we can.”
Cardy remained unavailable for comment.