A major Hull manufacturer has been forced to close its doors following a bitter contractual dispute that saw a client withhold a payment of more than half a million pounds, leading to the loss of dozens of jobs.
The Final Blow: A Dispute That Halted Operations
Kingston Modular Systems, a construction specialist based at the Sutton Fields Industrial Estate, entered administration in September. The company's downfall was sealed when a last-ditch rescue bid fell through, resulting in 62 immediate redundancies.
Founded in 2016 by directors Carl Galbraith and Kris Robinson, the firm had built a solid reputation over nearly a decade. It specialised in designing and manufacturing modular buildings and luxury park homes for key sectors including healthcare, education, and leisure.
During the height of the COVID-19 pandemic, the company played a critical role, notably constructing and dispatching a 28-bed Covid-19 ward to London in April 2020 to support the NHS frontline.
From Peak Turnover to Financial Crisis
At its peak in 2023, Kingston Modular Systems employed 100 people and achieved an impressive turnover of £17 million. However, the business began to face significant headwinds.
According to administrator reports, the company experienced a trading downturn in the year to 2024. This was due to delays in securing orders for major projects and a sharp decline in revenue from the leisure sector, which fell from £6 million in 2023 to just £2 million in 2024 as foreign holidays resumed post-pandemic.
This led to an initial round of 30 redundancies, reducing the workforce to 70. A £400,000 investment was secured but proved insufficient to secure the company's long-term future.
The Dispute That Broke the Business
The fatal blow landed in July 2025. The company received legal correspondence from an unnamed client alleging a breach of contract. The client stated it would withhold a £585,000 payment to cover what it claimed were its expenses.
The directors of Kingston Modular Systems challenged this position through their solicitors. However, the administrator's report notes they were denied the opportunity to address the alleged defects or concerns.
The non-payment had an immediate and devastating effect, causing the company's invoice financing provider to freeze its facility. This action triggered severe cash flow problems, leaving the business unable to pay its debts.
The administrator, Frazer Ulrick from Westgates Restructuring in North Ferriby, was appointed. His report confirms the company collapsed owing £1.7 million, with unsecured creditors facing losses of around £1.5 million.
A glimmer of hope emerged when 22 potential buyers expressed interest in rescuing the business. However, only one joint bid was formally submitted, and it was rejected. A revised offer was never presented, sealing the company's fate and leading to its ultimate closure.
