Failed contractor that lent 拢2.6m to group firms was also helping with football club鈥檚 running costs

It is understood that Verry Construction part-funded the wage bill for St Albans City football club before it went under last month.

The news comes as it emerged this week that William Verry Holdings, its parent company, had also gone into administration.

According to a source close to Verry, the payments exacerbated a row between John Gibson (pictured), the former chairman of Verry Construction and Craig Jones (left), then chief executive. Jones and Gibson argued over the level of intra-group debt, which led to Jones鈥 banishment in February.

The source said: 鈥淭he football club鈥檚 manager and secretary were on the Verry Construction payroll and it was paying for other running costs. It made Craig deeply unhappy.鈥

Jan Crosby, a construction expert at KPMG, said it was not unusual for one company to pay the wages of another within the same group.

Although the precise level of the lending is unknown, the football club owed the contractor 拢515,147 according to its latest accounts, dated 30 June last year.

When Verry Construction went into administration it was owed 拢2.6m by four group companies.

Jones and Gibson were unavailable for comment.

Meanwhile, administrator BDO Stoy Hayward has written to directors of the holding company, including Gibson and Jones, to ask them to complete a 鈥渟tatement of affairs鈥 form in an attempt to discover the true state of the company鈥檚 finances.

BDO is also the administrator for William Verry (Facilities Management), another company under the holding company鈥檚 umbrella.

Who's still standing ... and what they owe

William Verry Europe 鈥 owed 拢1.4m to Verry Construction (in June 2008)
William Verry Homes 鈥 owed 拢147,801 to group companies
William Verry Glazing 鈥 owed 拢418,337 to Verry Construction
St Albans City FC 鈥 owed 拢523,147 to group companies

And in administration:

William Verry FM 鈥 owed 拢708,370 to group companies
Verry Construction 鈥 owed 拢1.4m by William Verry Europe
William Verry Holdings 鈥 owed 拢488,456 by Verry Construction

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