Property firm behind Cardiff’s tallest hotel collapses owing £3m

Monday 8th March 2010

Angry contractors have been left in shock after the firm behind a new Radisson hotel in Cardiff city centre went bust, leaving them unpaid for five years of building work.

Imperial Property Company, owned by the London property tycoon Nick Sutton, collapsed into administration last month. Although administrator Deloitte has not yet established the extent of what is owed to creditors, it is thought to be around the £3 million mark.

Intex Construction, the lead builder of the 21-storey Radisson Blu building, has said that it has been forced to make 30 workers redundant as a direct result of the firm failing to pay them.

According to Andy Hall, of Intex Construction, his company is due about £500,000 for the total work they have done for Imperial Property Company on the hotel in Cardiff, as well as on another hotel project in Bristol.

Despite these problems, the hotel is being managed and run by Radisson and remains open, although the actual building remains unfinished, with conference and meeting rooms still uncompleted.

As the property company failed to pay contractors, standards and fixtures in the hotel are in such disarray that the hotel hasn’t secured the four-star rating it was aiming for.

Mr Hall has said that he is disappointed to lose the project after five years’ work, adding: “bread has been taken off people’s tables.”

The contractor revealed that just 10 days before Imperial Property Company went into administration Nick Sutton was promising to pay his creditors.

Richard Hawes, of Deloitte, has stated: “We are at the early stages of the administration, and are focusing on continuing to trade the business as usual.”