Torsion collapsed owing £22.5m 

The Leeds-based developer owed the money to trade creditors when it entered administration six weeks ago, with administrators Interpath revealing the scale of claims against the firm as the construction industry continues to face wider liquidity pressures.

James Clark and Howard Smith of Interpath were appointed as joint administrators of the firm on 29 July 2026.

The liquidity pressures experienced by Torsion will be well recognised across the industry, and despite the fact that last year it recorded record profits with revenues of £164m, up from £117m in 2024, and a pre-tax profit of £800,000, the firm has succumbed to industry pressures.

However, the company’s operating profit margins ranged between 0.5-0.7%, which “failed to provide a sufficient buffer to withstand working capital swings.”

Despite a thin margin, the company’s auditor was initially positive about the company’s prospects in the short term. A statement in the accounts said: “We have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months.”

Torsion arranged for its suppliers and contractors to be directly paid by clients as the firm’s money woes grew, in an attempt to minimise the impact on other businesses.

In terms of who is owed what, and what might be repaid, Interpath notes that Bibby Financial Services provided Torsion with a finance facility and “benefits from a fixed and floating charge over the Company’s assets, by virtue of a debenture dated 27 February 2026.”

Bibby is owed approximately £1m by Torsion, before ongoing interest and fees. Legal firm Walker Morris will undertake a review of Bibby’s security to confirm its validity, after which it is anticipated it will receive a distribution from fixed charge realisations – although in what quantity and when is currently unknown.

The amount owed in wages and benefits to employees amounts to around £0.4m, while the amount owed to HMRC – considered a secondary preferential creditor – is around £1.4m.

Interpath’s report states that it is currently uncertain whether any money will be repaid to HMRC, where it is “highly unlikely that there will be a dividend to unsecured creditors.”