Housebuilder enters administration

HOUSEBUILDER McInerney Homes, which has a base in Wolverhampton and interests across the West Midlands, has gone into administration threatening the jobs of more than 160 people.

The company, which is based in Wigan, has additional offices in Durham, Leeds and Northampton with development sites in the East Midlands, North West, Yorkshire and the North East.

Richard Heis, Brian Green and Paul Dumbell of KPMG have been appointed joint administrators to seven companies within the UK arm of the McInerney Holdings Plc group of companies, at the request of the companies’ directors.

The seven companies in administration comprise McInerney Group Ltd; McInerney Homes Ltd; Alexander Developments (North East) Ltd; Lancing Homes Ltd; Gold Homes (The Wave) Ltd; William Hargreaves Ltd and Bowey Homes Ltd.

Between them, the seven companies employ a total of 161 people – 10 in Wolverhampton – and are responsible for 32 private development sites across the UK, together with a number of social and commercial housing development projects.

The joint administrators intend to transfer a number of the private development sites – including Maddocks Grange in Telford – to a solvent entity within the group, Ludgate Hill Developments Ltd, to allow the sites to be developed.

Any return on investment will be used to help pay off creditors, following consultation with employees.

KPMG said an agreement had been reached between Ludgate Hill Developments and a major housebuilder to develop the sites once the transfer had taken place.

A further 22 development sites, including two in Walsall and one in Rugeley, remain in the hands of administrators.

The joint administrators have also agreed a second deal in principle with a number of the former McInerney Homes management team to acquire the social housing business, which includes projects in Shropshire and the East Midlands.

There have been 14 redundancies so far, all contracted employees at William Hargreaves.
The administrators are now conducting a consultation process with the remaining employees.

Mr Heis said: “The economic downturn, particularly in respect of the UK residential property market, has had a severe detrimental impact on the group’s cash flow 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.”