FK Facades and FK Construction Collapse as FK Group Continues

Parent company, FK Group which wholly owns both collapsed entities, has said it will continue trading, as will its Premo manufacturing business, according to reports in the Construction Enquirer.

FK Group is a full building envelope contractor, based in Altrincham, Cheshire. It specialises in roofing, cladding, glazing and maintenance across multiple sectors. FK Facades delivered both curtain walling and rainscreen cladding to commercial and residential high-rise developments.

In its latest filed accounts, FK Group reported £100 million turnover. Identifying industry headwinds including material supply and costs, credit risk insurance, inflation and the ISG collapse into administration, the company reported its working capital overdraft facility had been reduced and was more expensive.

The accounts file a bottom-line loss of almost £6 million to March 2024.

Dr David Crosthwaite, chief economist at BCIS, said: “The administrations of FK Group’s Facades and Construction businesses appear to be symptomatic of the simultaneous risks construction businesses face.

“Building costs are going up, clients want value for money in a tough economy, gateway 2 decision-making is improving but not fast enough and the fallout of ISG’s collapse is still working its way through the system.

“Together, these factors are holding SME supplier margins between a rock and a hard place. The collapse of specialist firms like FK Facades shrinks the supplier pool and risks an inflationary impact on associated supplier prices – in this case, that’s cladding and other external solutions. It’s a vicious cycle.

“Construction was incredibly resilient last year despite rampant uncertainty and macroeconomic constraints. That same resilience will be just as important in 2026.”

FK Group directors also point to the long dispute between FK Facades and main contractor, Office Depot International (UK) Ltd on a  design, construction and maintenance project for a warehouse at Ashton Commerce Park in Ashton Moss, near Manchester. The project was completed in 2005.

FK Facades Dispute

Earlier this week, FK Facades lost its roof remediation delays dispute with Paragon, an investment company as a party to FK’s contract with Office Depot International (UK) Ltd as an assignee.

On 20 January 2026, an earlier adjudicator’s ruling was upheld in the Technology and Construction Court, with FK Facades ordered to pay almost £100,000 in contract penalties and costs.

The High Court confirmed that an assignee of a construction contract can pursue adjudication against the original contractor.

The dispute stemmed from from a 2018 JCT Minor Works Building Contract for roof repairs at a commercial property in Ashton Moss, Greater Manchester. The original agreement was between FK Facades and Office Depot International (UK) Ltd.

Paragon acquired the employer’s rights through a series of assignments, the latest of which took place in 2024. It terminated the contract in 2025, citing culpable delay, and commenced an adjudication.

FK Facades challenged the adjudicator’s jurisdiction, arguing Paragon was not a party to the original contract and therefore could not initiate adjudication.

The adjudicator found against FK Facades, awarding Paragon £80,500, along with £17,787 in adjudicator’s fees.

After FK failed to pay, Paragon issued enforcement proceedings in the High Court in November.

Mr Justice Stephen Davies found that an assignee of contractual rights may refer a dispute to adjudication unless the contract explicitly prevents it and ruled in favour of Paragon.

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