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Building firm is ruined by oligarchs and bankers who refuse to pay
Jonathan Prynn, Consumer Affairs Editor9 Dec 2008
THE firm known as "London's poshest builders" has collapsed because many of its under-pressure hedge fund and oligarch clients have refused to pay their bills.
Robin Ellis Construction Services, whose past clients also included David Bowie, Sir Mick Jagger and Vanessa Mae, has been placed into administration owing at least £1.5million.
The firm was one of the best known pioneers of lavish deep basement conversions in London homes of the fabulously wealthy.
Its most notorious project involved the creation of a chute from a client's bedroom straight into her swimming pool so she would not have to get out of bed before her morning exercise.
Mr Ellis, 54, who founded the firm in 1984, specialised in projects ranging from £4million to £6million and was said to have a horror of "Footballers' Wives" vulgarity.
At the peak of the boom last year it was said he was not worth calling for home refurbishments with a budget of less than £1million and was already taking bookings for 2010.
Sir Mick had plans for him to create a swimming pool which could be converted into a 120-seater concert hall in a project costing £5million.
One hedge fund client asked for a listed Arts and Crafts home in Chelsea to be gutted and recreated exactly as it had been before but with modern cabling and plumbing and the staircase strengthened with steel so that it did not creak.
The demise of the firm is a stark illustration of how dramatically London's wealthy have been caught out by the savagery of the financial crisis and the economic downturn.
Only in August last year Mr Ellis, who lives in Primrose Hill, was quoted as saying: "London is so awash with money at the moment. People don't want to live in Paris, they don't want to live in New York, they just want to live in London. I can only compare it to 15th century Venice for sheer opulence and wealth."
But the collapse of financial markets and commodity prices has left many of the super wealthy with huge debts they can no longer pay.
Glyn Mummery of administrators Vantis said: "The demand for luxury design and construction in the property sector has dropped considerably. But I would say the company's demise took the directors by surprise.
"They were unable to get payment for outstanding work and they were facing long delays in the start of new work. It is not a pleasant environment to be in."
Mr Mummery added that the firm had been killed by the lack of cash flow. All 35 staff have been made redundant.
The collapse of Robin Ellis Construction Services and sister company Robin Ellis Projects does not affect Mr Ellis's surviving ventures including a design company, a plastering business and a property maintenance firm.
Reader views (9)
Robin Ellis is a very good guy with great vision, the headline spells it out.
He still has superb companies like butcher plaster works. I have seen and enjoyed Robins fantastic homes, Robin Ellis will survive!
Dan
- Dan, LONDON, 12/12/2009 18:33
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I'm just wiping away another tear as I read this sad story.
- P I Staker, London, 12/12/2009 17:33
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Don't get me started, Sandy
- Alex C, London, 12/12/2009 17:33
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His company may have gone bust be he has NOT. Robin ellis just didnt pay the sub contractors that done the work.THEY are the ones who have to suffer the man is a !!!!!!!
- Tw, england, 12/12/2009 17:33
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Yes Sally, I blame the bankers for global warming, mass immigration, a high crime rate , I slipped over today on some grass and I blame them for that as well. Those pesky vermin....
Oh about the story, another one in the eye for the green eyed monsters ...he he he
- Dc, London, 12/12/2009 17:33
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Ahh yes! those bankers , is there anything else anyone can think of that we can blame them for ?
- Sandy, London, 12/12/2009 17:33
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Well that's another £1.5 million written off then.
Great tricks.
Who is paying?
- Lauren, London Uk, 12/12/2009 17:33
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Excesses, bad planning.....anything else?
- Vrinder, Southampton, UK, 12/12/2009 17:33
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The richer the customers, the more averse they seem to be to actually paying. Take money up front and if they don't like it let them bankrupt someone else.
- Robin, Brentford, UK, 12/12/2009 17:33
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