Merepark puts construction arm into liquidation
MEREPARK Construction, the contractor handling the refurbishment of the Lewis’s building in Liverpool, is going into voluntary liquidation with the loss of 11 jobs.
The Altrincham-based business had the £26m contract for the work on the grade II-listed building as part of the £160m Central Village mixed-use scheme around Central Station.
It is being advised by Begbies Traynor which said the project was running 15% over-budget and as a result its funder, the Co-operative Bank, had stopped payments to subcontractors and suppliers.
The developer on the scheme is Lewis’s Liverpool LLP whose directors are Robert Ross and Richard Peel. They are also the shareholders of Merepark Construction, and other Merepark companies that continue to trade. Lewis’s Liverpool is now looking for another contractor to take on the work.
Around 85% of the project is complete and hotel operator Accor opened its 126-bed Adagio aparthotel in the building at the end of March. It will also have 80,000 sq ft of offices.
Merepark agreed a £37.1m forward funding deal with a Regent Capital syndicate to pay for the redevelopment. Co-operative Bank provided 10-year debt financing. Merepark’s spokesman declined to comment.
A spokesman for the Co-operative Bank said: “There has been no change of control in the Lewis’s project. The Co-operative Bank and its borrower remain committed to completing the final stages of the scheme.
“Steps are now being taken to appoint a suitable contractor to complete the remaining work without any undue delays.”
