Firm behind stalled Oldham development goes under

A PROPERTY development company behind a stalled scheme in Oldham has been placed into administration.

Manchester-based Whispers Developments (UK) Limited, which had planned to transform Royton Assembly Hall into an Indian restaurant and wedding venue, is now in the hands of insolvency firm Begbies Traynor.

Whispers Developments (UK) bought the site in 2003, and had hoped to have finished the scheme in 2004. This was then put back until 2006, and is still unfinished.

This has caused much local debate and criticism from residents and Oldham councillors.

Paul Stanley a partner at Begbies Traynor in Manchester, who has been appointed administrator by the developer’s bank, said: ““The refurbishment of Royton Hall has turned into a long-running saga for the council, and local residents are understandably frustrated with the lack of progress.

“This is a challenging market for property developers and we are currently trying to get to the bottom of the company’s finances. Perhaps action should have been taken sooner when it became clear that Whispers Developments was struggling to meet agreed deadlines and service its debts.

“Our appointment was made by the Bank as a defensive response to a winding-up petition served on the Company.”

Leaders at Oldham council have attempted on several occasions to schedule a meeting with the directors of Whispers Developments – who according to Companies House are three members of the Khan family –  but were often unsuccessful.

Last month, council leader Jim McMahon labelled the hall ‘a blight on the community’ and its directors either ‘indifferent’ or ‘not competent enough to sort it’.

Stanley added: “A significant amount of work remains to be completed for this building to prove itself fit for any purpose, whether commercial or for the community.”