Assets belonging to Kingston Modular Systems have been sold at auction for just over £200,000 after the modular healthcare specialist collapsed following a failed rescue attempt, bringing an end to the company’s trading and triggering job losses across its operations.
The Hull-based firm, which delivered offsite healthcare facilities including hospital wards and clinical spaces, entered administration last September.
According to administrators, the company’s collapse was driven by cashflow difficulties, client payment disputes and weakening demand, with more than 70 jobs lost as operations ceased.
The absence of a viable buyer left the firm unable to continue trading.
The subsequent auction of its equipment and factory assets marks the final stage in its wind-down, with more than 70 roles lost and creditors now set to receive proceeds from the sale.
The collapse adds to a growing list of UK modular businesses that have struggled to scale sustainable operations.
One such modular construction firm that also fell into administration was Merit, which collapsed amid financial pressures and delays on major projects, leaving many major NHS projects in limbo.
The business has subsequently relaunched under a revised structure and ownership as Merit Industrialised Construction, and has sought to rebuild its pipeline and reposition itself within the UK’s offsite healthcare and advanced manufacturing market.
Kingston Modular Systems’ collapse adds to a wider pattern of insolvencies among UK modular construction firms in recent years, highlighting the continued challenges facing parts of the sector as companies attempt to scale offsite delivery models.