Torsion Construction, part of property developer Torsion Group, has filed for administration after it failed to secure additional funding to support the business.
The Leeds-based firm, which specialises in living sector developments including residential, student accommodation and later living, filed notice to appoint administrators last month, with joint administrators from Interpath signing on last week.
Torsion Construction, which employed 115 people, has been experiencing liquidity pressures as it tried to tackle delayed capital events, contracting margin pressure and rising input costs, as well as a wider downturn in the market.
The firm’s directors were exploring options to secure additional funding to support the business, but administrators have said no viable solutions could be found.
Torsion has now ceased all trading and made most of its staff redundant. A small number of staff have been retained to assist the joint administrators in winding down the business.
In its latest results, the company reported a turnover of £165.4m in the year to 30 June 2025, with the cost of sales standing at £160.2m. Its pre-tax profits stood at around £497,000.
James Clark, managing director at Interpath and joint administrator of Torsion Construction, said the firm had faced “many of the immense challenges that have confronted leadership teams right across the sector”.
“Despite its efforts to find a sustainable solution and protect its clients from those pressures, the business’s liquidity ran out of road,” he added.
“With regret, Torsion Construction could not continue in its current form and was left with no other option but to cease trading. We have a team providing the appropriate information and support to staff as we work through an orderly wind-down of operations.”
So far, the arm has delivered around £287m worth of stock, with £303m in active construction and another £700m in secured pipeline. It had 12 live sites at the point of administration.
Schemes currently under construction include the 35-storey Sky Gardens residential tower in Leeds, which comprises 284 apartments. Last August, it also secured gateway 2 approval for its 10-storey Leeds student scheme, comprising 205 studio units.
Last year, Torsion as secured a £65m loan from Maslow Capital to support its Flax Place build-to-rent scheme in Leeds, before earlier this year winning a £63m refinancing package for three of its student accommodation assets from Cerberus Capital Management.
Last May, the wider group and private equity firm Khalbros also agreed to develop a mixed-use Leeds city-centre regeneration scheme with a gross development value of £1bn.
Torsion Group has been contacted for comment.
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