UK Trades 2 min read

Torsion Group Collapse Leaves Subcontractors Facing £20m Write-Off

What happened

The collapse of the Torsion Group has deepened, with Torsion Projects filing a notice of intention to appoint an administrator on 21 September. It's the third arm of the group to go under, after Torsion Construction entered administration in July and Torsion Developments went into receivership on 8 September.

The damage to the supply chain is severe. Administrators have confirmed that unsecured creditors face a total write-off of £20m, including £15.7m owed to trade creditors — the overwhelming majority of which is money owed to subcontractors and suppliers. No recovery is expected.

Torsion Construction, based in Leeds, had a turnover of £164m and specialised in housing and living sector projects. It employed 115 staff, most of whom were made redundant. The administrators cited "a prolonged period of exceptionally challenging trading conditions" combined with rising costs, reduced construction activity, and major commercial setbacks.

Torsion Projects, which had a £47m turnover building care homes and retirement living, is now the latest domino to fall.

What this means for tradespeople

Another major contractor going under isn't just a headline — it's a reminder that the construction sector's insolvency rate is the highest of any UK industry. With 500 firms already liquidated in 2026 and construction orders down 18%, the squeeze is real.

For self-employed tradespeople, this means two things. First, be careful about who you work for — large contractors collapsing can leave subcontractors thousands of pounds out of pocket with no route to recovery. Second, as bigger firms shed work, more tradespeople are competing for domestic jobs. Your online reputation is what separates you from the next name on the list.

What to do about it

Source: Construction News