Adjudications, Insolvencies and Gateway Delays Blamed for FK Facades Administration

A series of outstanding legal cases, bad debts and customer insolvencies, as well as delays to major projects caused by the introduction of the Gateway planning system under the Building Safety Act (BSA), have been blamed for the administration of the FK Facades Ltd.

In a statement from administrators Begbies Traynor Manchester, the problems at £130 million-turnover FK Facades Limited are said to have begun when sister company, FK Construction Ltd was the subject of a legal case in 2023, adding to an already existing total of 15 separate adjudications.

Despite the company (assumed to be ISG Construction) launching the legal case against FK Construction, itself going into administration in September 2024, FK Construction had already incurred legal costs of £3 million in defending claims against it amounting to £ 13million.

Two bad debts were also suffered early in 2024, costing the company a total of £6 million.

Gateway Delays

Meanwhile, the slow operation of the Gateway building control BSA system meant large projects were delayed, and other new work was reduced on the business’s order books.

Later in the year, in September 2024, Begbies Traynor were approached by FK Facades’ lawyers, while the company’s bank instructed an independent review of its finances and then extended its facilities, cross-guaranteed by parent company, Keenan Holdings and other companies owned by the Keenan family.

Later in 2024, FK Facades’ insurers rejected their claim for losses consequent on ISG’s administration.

Despite £6 million costs savings achieved during 2025, the directors decided the FK Group was no longer financially viable by December. Rights to seven ongoing contracts were transferred to Keenan Holdings and in January 2026 the company ceased trading, making staff redundant.

Administration Debts

Administration of the company, filed on 19 January, 2026, was delayed while bank concerns that other companies owned by the family, including FK Resolv Ltd would be dragged into the process were dealt with. On 13 February, FK Facades Ltd finalised the appointment of administrators, including for FK Construction Ltd and FK Group Ltd.

The three companies in administration were owed £2.8m by trade debtors, £2m in retentions and £14m for work in progress.

Its liabilities amounted to £3m owed to its bank, £2.5m of which is personally guaranteed by Francis Anthony Keenan.

Former employees are owed around £0.25m in unpaid holiday entitlement, redundancy pay, pay in lieu of notice and unpaid pension contributions. Around £1.5m is owed in various unpaid taxes.

Trade creditors are estimated to be owed c £18m, with other unsecured creditors owed a total of £21.3m. Begbies Traynor state that it is unlikely any of the unsecured creditors will be paid.

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