How Tolent going into administration affects Sunderland: Vow to press ahead with Vaux site development despite collapse of construction giant

Gateshead-based Tolent was appointed in June 2022 to lead construction of 135 “ultra-modern” houses as part of the ‘Vaux neighbourhood’ at the Riverside Sunderland development – the first of an expected 1,000 homes which are slated to double the number of people living in the city centre.

Academy plan

It was hoped that, should everything go to plan, the properties would be ready for the first families to start moving in by the end of this year.

The firm was also responsible for creating a new Sunderland College-operated Housing Innovation and Construction Skills Academy at Sheepfolds to train people to erect new factory-built homes known as Modern Methods of Construction (MMC) buildings - the first of which would be assembled at the Riverside Sunderland site.

The Vaux neighbourhood is one of four “distinct communities” planned for the wider site, with the overall scheme eventually expected to create city centre housing for up to 2,500 people.

But the scheme has been thrown into uncertainty after Tolent collapsed suddenly at the end of last week.

Constructionenquirer.com has reported that the entire Tolent group – Tolent plc, Tolent Construction Limited, Tolent Homes Limited, Ravensworth Properties Limited, Tolent Living Limited and Tolent Solutions Limited – was in administration, with James Lumb and Howard Smith from Interpath Advisory’s Newcastle office appointed Joint Administrators.

‘We remain committed to continuing with our ambitious plans’

It is understood that 313 Tolent staff have made redundant while a further 91 were retained to assist the administrators while they explore any possibility of a sale of the businesses and their assets.”

Sunderland City Council executive director of city development Peter McIntyre said talks were under way to find a way to press ahead with the scheme as quickly as possible: “We are aware that Tolent – the principle contractor delivering the Vaux Housing scheme on Riverside Sunderland – has gone into administration,” he said.

"We are in dialogue with the administrators but remain committed to continuing with our ambitious plans for the Vaux Housing site going forward.”