In June, High Court ordered German parent of Sto Ltd to pay Mulalley £1.8m for costs racked up replacing cladding system at Essex tower block

sto pic

Sto Ltd was based at a site near Birmingham

Administrators for a cladding firm which collapsed last year have revealed the company has received £135m in claims which it said mainly relate to legacy cladding issues.

In its latest update on the collapse of Sto Ltd, which was based at King’s Norton near Birmingham, Grant Thornton said: “We have received unsecured claims totalling £135.15 million.

“We highlight that this is largely made up of contingent claims that are in relation to cladding claims. These have not been adjudicated or confirmed as final claims in the administration.”

The administrator said it was “continuing to correspond with our solicitors and third parties who are pursuing legacy cladding claims”.

Sto Ltd was a subsidiary of German parent Sto SE & Co. KGa and in its last set of results had a turnover of £15m.

At the end of 2024, Sto SE & Co. KGa filed a winding up notice against Sto Ltd at the Edinburgh Court of Session. No reason for the filing was given.

But in an initial update following its collapse last January, administrators last March said the expected cost of cladding claims – then estimated at £50m – helped send Sto Ltd under.

In the March 2025 update, it said: “[Sto Ltd] has been approached by more than 20 parties representing, either claims, pre-action protocol letters or notification of potential claims in respect of building projects undertaken for the period 1997 to 2015.”

It added: “The UK directors formed the view that the company was unable to meet its financial obligations in defending these claims or covering any potential losses arising from any proceedings. They further concluded that the company was technically insolvent and should consider the process of administration. This view was shared with the company’s parent company Sto. SE.”

In June, Mulalley was handed a £1.8m settlement in a landmark ruling by a High Court judge who decided that Sto Ltd’s parent should have to shoulder some of the contractor’s costs caused by it having to replace a defective cladding system its subsidiary supplied for work on an Essex tower block.

Sto SE & Co. KGa has been contacted for comment.

Topics