Innovate collapse leaves subcontractors out of pocket

Two subcontractors have been left out of pocket to the tune of almost £700,000, following the collapse of Innovate Holdings' construction arm.

The Innovate group, which comprised 15 separate companies including a construction division, went into administration in July. It owed a total of £19m to trade creditors.

Thermal insulation contractor Low Therm is owed £432,000 by Innovate Logistics' internal construction arm, while Carmac (Building and Civil Engineering) is still owed £247,000.

Creditors of Innovate Construction are likely to receive around 21p in the pound.

Carmac operations director Andy Morris told CJ he was "bitterly disappointed".