Gary Herbert spent 35 years at business which collapsed two weeks ago

The former managing director of Michael J Lonsdale has told 黑洞社区 rumours the firm was sunk by a particular job or contractor are not true, adding that instead the company was felled by a combination of events including inflation and a waning credit rating.

Gary Herbert joined the business 18 months after it was set up by Michael Hoodless 鈥� the Lonsdale takes its name from the maiden name of Hoodless鈥檚 wife 鈥� in 1986.

鈥淚t was 37 years of work,鈥� Herbert told 黑洞社区. 鈥淚 wouldn鈥檛 wish what鈥檚 happened on anyone. It鈥檚 devastating.鈥�

The firm collapsed into administration two weeks ago sending shockwaves across the industry before rumours began to circulate the company had been laid low by a problem contract or was owed money by a contractor.

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Lonsdale was set up in 1986 and collapsed at the start of the month. Its managing director blamed a 鈥榗ombination of events鈥� for its demise

But Herbert said: 鈥淚鈥檝e heard silly things that people owed us 拢30m. That鈥檚 not true. It鈥檚 a culmination of events. It wasn鈥檛 a particular job or contractor, that鈥檚 the truth.鈥�

He added: 鈥淲e鈥檝e had a 25 year relationship with a lot of contractors. It鈥檚 a horrible feeling [what鈥檚 happened].鈥�

黑洞社区 understands several firms had recently put Lonsdale on accelerated payments but Herbert declined to confirm names.

He said rising inflation and other high-profile administrations had damaged its credit rating, which the firm had first referencedin a letter sent to staff announcing the firm鈥檚 administration. 鈥淭he credit rating [issue] is a big one for everyone,鈥� he told 黑洞社区.

One rival admitted the number of administrations this year, such as those at Tolent, Buckingham and Henry Construction, had spooked insurers.

鈥淐an subcontractors get insurance for someone up the chain? If they can鈥檛, then you鈥檙e dead because they won鈥檛 work for you. If the credit rating is bad, the insurers think 鈥榳e have nowhere to go if this goes wrong鈥�. It鈥檚 a big problem at the moment.鈥�

Several firms including Mace, ISG and Overbury have since taken on former Lonsdale staff which numbered around 300 at the time of its collapse.

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Lonsdale worked on both the 22 Bishopsgate and 8 Bishopsgate (to the right of 22) towers in the City of London

Lonsdale鈥檚 rollcall of jobs includes Multiplex鈥檚 22 Bishopsgate tower and Mace鈥檚 UBS building at Broadgate while more recently completed schemes include Lendlease鈥檚 8 Bishopsgate tower and the Lucent building at Piccadilly Circus built by Wates. Current jobs included the 21 Moorfields scheme, where ISG is carrying out fit-out work, while it was about to sign up for Overbury鈥檚 Citibank refurbishment in Canary Wharf at the time of its collapse.

Several contractors have admitted Lonsdale at the top of their go-to M&E contractors and Herbert, who said he had received 鈥渄ozens鈥� of messages of support following the administration, admitted: 鈥淲e did a lot. My wife got bored of me pointing out all the stuff we worked on. To me every job was the best job whether it was 拢50,000 or 拢50m.鈥�

Begbies Traynor was appointed administrator with the firm set to file a statement of proposals by the middle of November.