Stewart Milne Group has gone into administration resulting in the loss of 217 jobs.
Insolvency practitioners from Teneo were appointed joint administrators of the Aberdeen-headquartered housebuilder and developer yesterday (8 January).
Six other businesses within the wider group were also placed into administration – seven in total.
However, it is understood Stewart Milne Homes North West England Limited, which has a separate funding structure, has not been placed into administration. A strategy is being discussed with Homes England and there should be an update soon, administrators said.
“No further construction is being completed at this time by the companies as a result of the administrations,” a statement reads.
“The administrators will shortly be contacting all known customers with reservations, creditors, suppliers, subcontractors and hired plant/equipment providers.
“If you are a supplier, please note that no further orders should be fulfilled, and delivery to the sites should not be attempted, unless otherwise advised by the administrators.
“If you have outstanding invoices, please note that a claim will need to be submitted to the administrators.
“Due to the cessation of trade, no further work should be undertaken by subcontractors. Please note, site access should not be attempted unless otherwise approved by the administrators.”
Founded in 1975, Stewart Milne operated development sites across the North East of Scotland, Central Scotland and North West England.
Over the last few years, however, the group faced “significant challenges” and economic uncertainty due to rising interest rates, increasing cost pressures and reduced consumer confidence.
Previous attempts to sell the business and to also restructure the group were unsuccessful, hence the administration process.
Teneo insolvency practitioner, Adele MacLeod, said: “The downturn in the UK housing market combined with an extensive sales process not resulting in any viable offers has ultimately led to the need for the directors to place Stewart Milne Group Limited and some of its subsidiaries into administration, regretfully with some immediate redundancies.”
Adding: “We continue to assess all the options in respect of the group’s Scottish development sites and encourage any party with an interest to get in touch.”
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