Advance Northumberland optimistic about Bedlington town centre project, despite Tolent entering administration

Tolent plc, which has its HQ in Gateshead, and five subsidiaries appointed administrators on February 13, making 313 employees redundant.

The firm had been constructing a mixed-use development in Bedlington on behalf of Northumberland County Council-owned developer Advance Northumberland, including an Aldi that opened in November 2021 and a set of four retail units due to be completed this summer.

A spokesperson for Advance Northumberland said: “We have received formal notification that Tolent has gone into administration and extend our sympathies to all the staff involved.

"Discussions are ongoing to secure a new contractor and to restart works as soon as possible.

“Advance Northumberland and the county council remain committed to delivering the project as planned and new completion dates will be communicated as soon as possible."

However, MP for Wansbeck Ian Lavery called the news a “potential disaster for our region.”

He said: “This is yet another setback for the constituency that must be addressed immediately.

“I will be writing to Advance Northumberland asking them what actions they will be taking in light of this news and will do whatever I can in my position to ensure that there is as little disruption to this project, and any other projects in the constituency involving Tolent, as possible.”

Administrators from Interpath Advisory have retained 91 people at the firm while they explore a sale of the company or its assets.

James Lumb, managing director at Interpath Advisory and joint administrator, said: “Our priority in the coming days is to work with key stakeholders to assess options for each of the companies, including options for ongoing contracts and live projects.

“We will also be providing support to those employees who have been impacted by redundancy, including providing them with the guidance and information they need to be able to make claims from the Redundancy Payments Office.”

The rising costs of raw materials, supply chain issues, labour shortages, and the collapse of other developers and contractors contributed to Tolent’s recent difficulties.

A major contract at the £85.5m Milburngate development in Durham becoming increasingly loss-making for Tolent is cited by administrators as having had a particularly profound impact on the firm’s working capital.

Mr Lumb added: “Tolent is one of the most well-known construction firms in the North East.

“Following the tapering off of the government’s Covid support schemes and in the wake of recent economic volatility, access to finance has tightened for many companies across the sector.

“This means many building and construction firms are finding they have fewer options available to them to help deal with any liquidity crisis.

“Additionally, after the annual Christmas shutdowns and a cold December, the months of January and February often bring with them a painful cash crunch.

“In a sector which typically operates on wafer-thin margins, this can often prove to be insurmountable and, unfortunately, so has been the case for Tolent.”

Tolent had been close to completing work at Berwick Leisure Centre before collapsing. It was also involved in the Riverside Sunderland project and Hadrian’s Tower in Newcastle.