Housebuilder McInerney hit by property slump

IRISH housebuilder McInerney Homes has been placed into administration, with KPMG appointed as joint administrators.

The company, whose UK headquarters is based in Wigan, had grown in the UK through a series of acquisitions – the first of which was Charlton Homes in 2001.
It also had offices in Durham, Leeds, Wolverhampton and Northampton.

Seven UK group companies have been placed into administration, including McInerney Group Limited; McInerney Homes Limited; Alexander Developments (North East) Limited; Lancing Homes Limited; Gold Homes (The Wave) Limited; William Hargreaves Limited and Bowey Homes Limited.

Between them, the seven companies employ a total of 161 people and were responsible for 32 development sites across the UK, together with a number of social and commercial housing development projects.

The joint administrators intend to transfer most of the private development sites to a solvent entity within the group, Ludgate Hill Developments, to allow them to be developed out.

A sale has already been agreed to a major housebuilder once work has completed.

Moreover, the administrators have also agreed a deal with some of the company’s management to complete a buyout of the social housing side of the business, subject to certain conditions.

However, some 14 members of staff from the William Hargreaves commercial contracting business have already been laid off.

Administrators are currently conducting a consultation process with the remaining employees about a transfer to the new business units.

Paul Dumbell, a director at KPMG’s North West restructuring arm and joint administrator, said: “The economic downturn, particularly in respect of the UK residential property market, has had a severe detrimental impact on the group’s cashflow, therefore limiting its ability to trade without substantial additional finance.”

“Our 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 Limited and a major housebuilder to build out these sites. 

“This should assist us in ensuring continuity as far as possible to the customers and suppliers alike.”