ACG’s collapse hits Kings Dock
THE FLAGSHIP Kings Dock scheme in Liverpool has suffered another setback with the collapse of a third developer.
David McLean Homes and City Lofts have already gone into administration, now a construction business owned by the high profile Manchester tycoon Carol Ainscow has been put into voluntary liquidation.
ACG North Ltd, which was building around 100 flats at the site, is being wound up by Stockport-based accountant Bennett Verbey. But bosses said the business was a victim of “poor management decisions” rather than the construction slump.
Its collapse has left Liverpool MP George Howarth calling on business secretary Lord Mandelson to launch an inquiry. The government’s regeneration agency English Partnerships has invested £75m at the waterfront site adjacent to Albert Dock and is now reviewing its plans for half of the 36-acre site.
A statement released by ACG’s Manchester-based parent Artisan Holdings stressed that the decision to wind up the business would not have an impact on Artisan or its construction capacity.
Artisan is still hoping to take control of BASE, its joint venture with Barratt which is handling a £100m development scheme in Tameside, which involves 900 houses across 27 sites.
ACG’s managing director Paul Curran, said: “Substantial funds have been injected into ACG North Ltd in an attempt to trade it out of its problems but having taken expert advice and to protect our creditors we took the decision to put it into liquidation.
“This situation has not arisen because of the economic downturn but because of a legacy of poor management decisions by personnel who have now left the company.”
ACG, a subsidiary of Artisan Construction, made a pre-tax loss of £621,944 and employed 50 staff, according to the most recent accounts filed at Companies House for the year to June 2007.
