Vidi Construction collapses, leaving €7M in unpaid bills

Coventry-based Vidi Construction owed nearly €7 million to subcontractors and suppliers when it entered administration in September, according to newly released filings.

Administrator Horsfields disclosed that 227 trade creditors are holding unpaid invoices that are now effectively worthless. The company also left behind €350,000 in unpaid wages for 32 employees and €275,000 owed to tax authorities, Construction Enquirer reports.

At the time of its collapse, Vidi was actively working on five residential projects across London and the South East.

Draft management accounts paint a picture of what appeared to be a healthy operation: the company posted €93 million in revenue for the year ending September 30, 2024, with pre-tax profits of €2.2 million.

But those numbers masked a brewing crisis. The firm, which had been operating since 2016, saw its primary client enter administration in 2024, a blow that proved fatal to its business model.

The client’s collapse triggered an immediate domino effect. More than half of Vidi’s active projects were suspended overnight, starving the company of cash flow and ultimately forcing it into administration.

The case highlights the fragility of construction supply chains, where a single client failure can cascade through multiple tiers of contractors and suppliers, leaving millions in unpaid debts across the industry.