David Adjaye entered into Company Voluntary Arrangement (CVA) in a bid to stave off insolvency and prevent financial collapse of his practice by rescheduling debts estimated at £1 million
Under the terms of the CVA, the company is paying back 43p in the pound to the creditors. The most recent accounts filed by the firm in March last year, show the company made a loss of £59,000 and owed more than £1 million to creditors.
According to the insolvency practitioner Valentine & Co, which is supervising the CVA, the arrangement became necessary following delays or stoppages to projects in Birmingham, Abu Dhabi, Kuala Lumpur and India. The AJ also understands the firm has also just missed out on a major masterplanning scheme in Spain.
In April, a consortium led by Adjaye Associates won the coveted competition to design the £300 million National Museum of African American History and Culture, funded by the Smithsonian and located in Washington DC.
The firm saw off strong competition from five other firms including Foster + Partners to design the building. Other firms that submitted designs were: Devrouax + Purnell, Diller Scofidio + Renfro, Moody Nolan and Moshe Safdie and Associates.
Adjaye Associates declined to comment at this time.