WJ Mitchell goes down with œ2m debts

Receivers say it is too early to predict whether sub-contractors owed money by London's oldest contractor, W J Mitchell & Son - now in receivership - will get any dividends.

Coopers and Lybrand partner Steve Holgate said the firm, founded in 1797, had debts which could run to œ2 million.

Holgate said: 'Mitchell's demise is indicative of the terrible state of the industry. With a poor load of new work and poor margins, the combination can be critical for a smallish contractor.'

Holgate has been unable to allow any of Mitchell's contracts to continue. Mitchell's main asset, an office and yard in Dulwich village which it owns, is to be sold.

W J Mitchell had a turnover of œ4 million and a staff of 60. It was a chartered building company with its own specialised joinery works.