Staff owed six-figures as Whitby construction firm is liquidated

Staff were left unpaid at a Whitby construction company that has entered into liquidation owing almost £200,000.

The construction company was based in Whitby. <i>(Image: Getty)</i>

(Image: Getty)

Staff were left unpaid at a Whitby construction company that has gone into liquidation owing almost £200,000, according to a liquidators' report.

P.M Straw (Builders) Ltd was a long-established firm and was established in 2002.

Companies House lists the sole director as Stephen Straw.

The company, which was registered at Bagdale, Whitby, entered voluntary liquidation on August 19.

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Westgates Restructuring of Hull was appointed liquidator.

A liquidators’ report known as a statement of affairs outlined the situation.

The report said there were no estimated realisable assets that could be distributed to preferential creditors - those who are paid first.

Among the liabilities, there were seven employees owed £14,004.23 as a preferential creditor.

In addition, HMRC was owed £53,344.74 as a secondary preferential creditor - one who is paid next.

This was made up of £53,343.73 in PAYE and £1 in VAT.

This gave a total deficiency of £67,348.96 with regard to preferential creditors.

In addition, unsecured creditors - those who are paid last - were owed a total of £128,378.28 among them.

This was made up of trade and expense creditors owed £797.89.

In addition, seven employees were owed £117,444.47 between them.

A bank was owed £1 and HMRC was owed a further £10,134.90 in Corporation Tax.

This gave a total deficit with regard to creditors of £195,827.24.

With the company having £103 in issued and called up capital, this gave a total overall outstanding deficit or shortfall of £195,830.24.