One of Britain's best-known construction firms has filed notice to appoint administrators.
The move throws a series of major London developments into doubt and leaving workers, subcontractors and clients facing uncertainty.
Ardmore Group, the contractor behind some of the capital's most prestigious hotel and residential schemes, has taken formal steps towards administration after reportedly failing to make payments to workers and subcontractors.
Court documents show multiple divisions of the business, including its construction and major projects arms, have filed notices signalling the appointment of administrators.
The move has cast doubt over nine active construction projects across London, with industry publication Construction Enquirer reporting that work stopped on sites on Thursday morning.
Among the developments affected is Tribeca, a £500million mixed-use laboratory and housing scheme in King's Cross, which is understood to be the largest project impacted by the company's difficulties.
A spokesman for Tribeca said: "In light of Ardmore's difficulties, we are working proactively with our supply chain partners and have a clear strategy to ensure continuity of delivery on Tribeca."
The affected schemes range from luxury hospitality developments in the West End to major residential towers in east London.
Ardmore was founded in Catford, south-east London, in 1974 by Irish brothers Cormac Byrne and Patrick Byrne, who were originally from Donegal.
Ardmore Group administration: Construction giant behind Raffles London and The Ned faces collapse
|GETTY
Over the following five decades, the brothers transformed the business from a local contractor into one of the UK's leading construction companies.
The firm became known within the industry for taking on complex and high-profile projects that many rival contractors were reluctant to pursue.
Among its most notable achievements was the transformation of the Grade II-listed Old War Office building on Whitehall into Raffles London, a luxury five-star hotel occupying the historic site that once served as Sir Winston Churchill's wartime headquarters.
Ardmore also delivered The Ned, converting the former Midland Bank headquarters into a luxury hotel and private members' club in the City of London.
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Ardmore also oversaw the transformation of the former Midland Bank headquarters into The Ned, a luxury hotel and private members’ club in the heart of the City of London
|THE NED
The company's portfolio extended beyond hospitality projects, with Ardmore delivering high-rise residential developments for some of the UK's largest housebuilders, including Barratt Redrow, Berkeley and Crest Nicholson.
However, the group became increasingly exposed to liabilities linked to historical construction projects following investigations into fire safety standards after the Grenfell Tower disaster.
Reviews of older residential buildings identified fire safety defects at a number of developments constructed by Ardmore decades earlier.
In an attempt to protect the wider group from mounting legal claims, the company placed its original contracting arm into administration last summer.
That strategy suffered a significant setback after Crest Nicholson secured a High Court victory which established that liability for building defects could extend beyond the original contractor to include parent companies and associated businesses.
The judgment resulted in Crest Nicholson being awarded almost £15million to cover remediation work at Admiralty Quarter in Portsmouth, a 19-building waterfront development completed in 2009.
The ruling paved the way for further claims from other major developers seeking compensation for remediation costs.
Court records show that Taylor Wimpey, Bellway and Barratt Redrow have subsequently filed claims against Ardmore.
The group's financial position had already come under increasing pressure before the latest developments.
Accounts covering the year to September 2024 show Ardmore generated turnover of £343.8million but recorded a pre-tax loss of £42.6million.
The company said the losses reflected difficulties on legacy projects and the impact of a substantial adjudication award connected to a former contracting entity.
That award included a payment of £15million to Barratt relating to remediation work at Crown Heights in Basingstoke, a 250-flat residential tower where unsafe cladding required replacement.
One construction industry executive said: "For some time now, Ardmore has been telling [clients] it is being pursued for more [money] than it's worth."
Another industry figure warned: "It's going to get messy."
The collapse represents a significant development for the UK construction industry, which continues to face pressures from rising costs, remediation liabilities and weaker demand across parts of the residential property market.