Contractors’ anxious wait after firm building new Sunderland hotel collapses

New Premier Inn, situated St. Michaels Way, Sunderland City Centre
New Premier Inn, situated St. Michaels Way, Sunderland City Centre
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CONTRACTORS owed money after the collapse of the firm building Sunderland’s new Premier Inn will have to wait to find out if they will receive anything.

The Echo revealed on Tuesday that work on the £7.5million Hind Street development had ground to a halt after builder GB Building Solutions and parent company GB Group Holdings called in administrators.

City businessman Steve Lynn revealed he was owed around £200,000 for work on the site and another in Newcastle and said “This will virtually wipe me out.”

Steve and others like him will face an anxious wait as administrator BDO go through the companies’ assets.

A spokeswoman said it was likely to be several weeks before any further information is available: “We have no further updates,” she said.

“The joint administrators are currently working to look at the assets and understand the issues involved.”

Steve Lynn of SJL Brickworks, BIC, Southwick, Sunderland, who is owed �1000's afer the collapse of the firm building the Premier Inn in Sunderland City Centre

Steve Lynn of SJL Brickworks, BIC, Southwick, Sunderland, who is owed �1000's afer the collapse of the firm building the Premier Inn in Sunderland City Centre

•Related story: Work stops on £7.5million hotel for Sunderland after builder’s collapse

The Premier Inn development is not the only high profile project in the region to be affected by the collapse of GB Building Solutions.

The firm was also working on the £7.1million transformation of the cycle and pedestrian Tyne tunnel for the North East Combined Authority.

Connecting Howdon and Jarrow, the tunnel closed in May 2013 and was expected to be shut for around a year, but has already been hit with delays after high levels of asbestos were found in the lining of escalator shafts and the lower halls.

A spokesman for the North East Combined Authority said: “We are currently assessing what contractual arrangements we have in place to ensure that the work is completed.”

Premier Inn says it remains committed to the Sunderland project, which would see it take on a lease for the building from GB Building Solutions’ sister company, GB Development Solutions.

“We are looking forward to opening a new Premier Inn in Sunderland City Centre and bringing new investment and jobs to the city,” said spokesman Richard Aldread .

“There will be a short-term delay as new arrangements are put in place for completing the build.”