The seven companies in administration comprise McInerney Group, McInerney Homes, Alexander Developments (North East), Lancing Homes, Gold Homes (The Wave), William Hargreaves and Bowey Homes.
Between them, the seven companies聽have 32 ongoing private development sites across the UK, together with a number of social and commercial housing development projects.
Out of 161 staff, only 14 have so far been made redundant.
Irish parent company McInerney Holdings has had a tough time with the collapse of the market. It de-listed from the Irish stock exchange in November, saying that it was no longer in a position to meet its continuing obligations for listing.
The UK businesses are now in the hands of KPMG at the request of the companies鈥� directors. Richard Heis, Brian Green and Paul Dumbell have been appointed joint administrators,
Wigan-based McInerney Homes is a house builder, with additional offices in Durham, Leeds, Wolverhampton and Northampton and with development sites around the North East, North West, Midlands and Yorkshire.聽
The joint administrators intend to transfer 10 of the private development sites to a solvent entity within the group, Ludgate Hill Developments Ltd, to allow these sites to be developed with the aim of maximising the return to creditors following consultation with employees. An agreement has been entered into between Ludgate Hill and a major housebuilder to develop these sites once the transfer has taken place.
The joint administrators have also agreed a second deal in principle with a number of the former McInerney Homes management team to acquire the social housing business, with completion subject to a number of conditions.
The administrators are now conducting a consultation process with the remaining employees in accordance with TUPE legislation for each of the potential business transfers. This process is estimated to last for two weeks.
Richard Heis, restructuring partner at KPMG and Joint Administrator, said: 鈥淭he economic downturn, particularly in respect of the UK residential property market, has had a severe detrimental impact on the group鈥檚 cash flow therefore limiting its ability to trade without substantial additional finance.
鈥淥ur overriding objective is to ensure that work on the majority of the live private development sites is able to continue in order to maximise value in the interests of all the creditors. We are therefore delighted to have assisted in establishing the agreement between Ludgate Hill Developments Ltd and a major housebuilder to build out these sites.聽This should assist us in ensuring continuity as far as possible to the customers and suppliers alike.鈥�
Then 10 sites transferring to Ludgate Hill Developments are:
- Beaumont Court, Pegswood, Morpeth
- Beaumont Grange, Bewsey Road, Warrington
- Bishops Park, Sunderland Road, Gateshead
- Bispham Hall, Billinge
- Catreffle, Ruthin Road, Wrexham
- Grace, Thornton Road, Bradford
- Maddocks Grange, Limekiln Lane, Telford
- Whitton View, Rothbury, Northumberland
- Wydale, Rutland Avenue, Walker
- Zest, Newton Heath, Manchester
Got a story? Email news@theconstructionindex.co.uk
