Housebuilder David McLean has been put into administration.
Deloitte has been appointed to handle the North West-based developer’s business.
The developer has a number of projects across the
Adminstrator Deloitte said that the directors of the Deeside based company had for some time been trying to secure “a consensual restructuring” of the group’s financial affairs follwing the downturn in the residential property market.
Joint administrator Nick Edwards said: “While the property downturn has impacted the group’s cash flow, the land and property assets are high quality, and combined with the excellent reputation of the group, should make the housebuilding division an attractive prospect for potential purchasers.
“We are continuing to trade this part of the business while we seek a buyer.”
He added: “The contracting division has struggled to generate a critical mass of profitable contracts, and regrettably we have had to take the decision to close that part of the business, other than retaining a significantly reduced headcount to work with customers to complete or transfer limited works on outstanding contracts.”
David McLean Holdings and its trading subsidiaries – David McLean Contractors, David McLean Developments and David McLean Homes – has a turnover of £160m and around 320 employees.
John Downes, managing director of Langtree Group, which is joint venture partner with David McLean on the £250m Garden Festival site in
He added: “This news will inevitably delay progress a little but will not stop the project. Langtree remains absolutely committed to delivering the scheme.
“Langtree Group is in a very strong financial position with a healthy balance sheet and has the ability to deliver the project on its own, if needed.”
