Job losses ‘inevitable’ following Morris property collapse

STAFF at the companies in the property group owned by former Leeds United director Simon Morris are facing an uncertain future after administrators said there would be job losses.

The remaining seven subsidiaries in the group are expected to go into administration by the end of this week.

Earlier this week, TheBusinessDesk.com revealed that Leeds-based commercial and residential property firm SRM Holdings and 36 of its subsidiaries, which were owned by Morris, had gone into administration. 

The downturn in the housing market, as well as bad publicity surrounding the businesses have been initially cited as the main causes of the failure.

Meanwhile, it has been revealed that administrators from KPMG have been appointed to 20:20 Developments (Management) and Skinner Lane (Commercial) – two of the companies which were run by Mr Morris.

Together, the two companies hold a development site of approximately 272 residential flats in Skinner Lane in Leeds.

Richard Fleming and Mark Firmin from KPMG’s restructuring practice in Leeds have been appointed as administrators of 20:20 Developments (Management) and Skinner Lane (Commercial).

Mr Fleming, head of KPMG’s restructuring practice in the North of England, said: “We’ve been appointed as administrators to one specific development, which is the major asset within the SRM Group and will be working with management over the coming days in order to assess the situation.”

Joint administrators Bob Maxwell, John Kelly and Rob Sadler of Begbies Traynor in Leeds, which has been called in as administrators of SRM Holdings, have confirmed that trade creditors and banks are owed in the region of £50m by the companies.

The administrators have confirmed that job losses will be “inevitable”, but the extent of these has not been revealed.

Investigations into the conduct of the companies’ directors has not yet begun, but the administrators said they would be writing to all creditors over the coming months to establish a detailed history of the firm’s management.

Mr Morris’s property group has its headquarters at Brewery Wharf in Leeds and owns a portfolio of more than 500 properties, mostly flats in Leeds, and employs 30 people.