Merit Group, a Cramlington-based offsite construction firm, has entered administration, leading to the redundancy of the majority of its 340 employees.
James Lumb and Will Wright from Interpath were appointed joint administrators to Merit Group Services Limited, Merit Health Limited and Merit Holdings Limited on 17 and 18 November 2025.
Merit worked with clients across the healthcare, life sciences, education, battery technology and aerospace sectors. In recent months, the company faced “contractual issues and delays to a number of its major contracts, which in turn had a significant impact on cashflow.”
The liquidity pressure was compounded when Merit Group Services Limited became subject to an unexpected winding-up petition, which affected new work awards and caused delays on ongoing projects.
The company’s directors explored various options, including sale, refinancing and investment. When it became clear that a solvent solution was not achievable, they opted to appoint administrators.
Operations have now ceased, with the majority of Merit’s employees made redundant.
James Lumb, managing director at Interpath and joint administrator, said: “The UK construction industry continues to face tremendous headwinds, with rising costs, high interest rates and subdued private sector demand having an impact on larger contracts in particular. Although Merit has developed an outstanding reputation for the quality and innovation of its specialist offsite solutions, these broader challenges proved to be insurmountable.”
He added: “We continue to explore options in order to find a solution that works for Merit’s customers, employees and creditors. In the meantime, we are prioritising providing support to all those who have been affected by redundancy, including supporting them with claims to the Redundancy Payments Service.”
The administration of Merit Group highlights the ongoing challenges faced by UK construction firms, particularly those specialising in offsite and complex project delivery.
