Uncertain future for £53m Hollis Croft flats in Sheffield after developer goes bust
The 17-storey tower is 70 per cent finished, administrators say
Construction has stopped on a £53m flats project in Sheffield city centre after the developer went bust.
Hollis Croft, on Tenter Street, is deserted after builders were sent home.
It comes after Leeds-based Torsion Construction was declared insolvent - unable to pay its bills - and put into administration with the loss of 115 jobs.
The 17-storey tower, home to 234 flats, is 70 per cent finished, according to administrator James Clark, managing director at Interpath.
It will be September before they know how much money will be recovered from selling assets to pay creditors, he added.
But the chances of a payout to workers on the Hollis Croft site, who are mostly sub-contractors, were slim, he said.
The development was being funded by the Housing Growth Partnership, which is backed by Lloyds Bank.
Mr Clark said Torsion’s insolvency left it in breach of its contract with HGP, and it had now taken control of the site.
It was in the process of engaging another construction company, aiming to avoid a “big break” in activity, he added.
He said he is also hopeful HGP would cover workers’ wages in a bid to encourage them to return, to maintain existing warranties which require work to be carried out with reasonable skill and care.
Mr Clark said Torsion Construction has been hit by rising costs, “delayed capital events” and a downturn in the market.
He said: “Torsion Construction has faced many of the immense challenges that have confronted leadership teams right across the sector.
“Despite its efforts to find a sustainable solution and protect its clients from those pressures, the business’ liquidity ran out of road.
“With regret, Torsion Construction could not continue in its current form and was left with no other option but to cease trading.
“We have a team providing the appropriate information and support to staff as we work through an orderly wind down of operations.”
Lloyds Bank was approached for comment.
The Torsion tower is next door to a True Student block of 494 flats on Broad Lane.
The Vista flats on Pond Street stood half-finished for 18 months after the project went bust.
Work halted in December 2023 after the project collapsed into administration, it restarted in October last year.