Wed, 10 Jan 2024 | ADMINISTRATION
Scotland-headquartered housebuilder Stewart Milne Group has fallen into administration after efforts to sell the business failed. Despite offers having been received, no sale was agreed, leading to the appointment of administrators from Teneo on January 8 2024.
Adele Macleod, Gavin Park and Matt Smith of Teneo were appointed as joint administrators of Stewart Milne Group Ltd and Stewart Milne Homes North West England Ltd, with Adele Macleod and Matt Smith also appointed administrators of five other subsidiaries within the wider group.
Following their appointment, all businesses under the control of the administrators immediately ceased trading and will not complete any further construction at this time. 217 roles within the group were made redundant upon the appointment of administrators, while more than 110 roles have been retained.
The joint administrators will now focus on realising the group’s assets and undertaking an orderly wind-down of the business.
Adele MacLeod of Teneo said: "The downturn in the UK housing market combined with an extensive sales process not resulting in any viable offers has ultimately led to the need for the directors to place Stewart Milne Group Ltd and some of its subsidiaries into administration, regretfully with some immediate redundancies.”
"We continue to assess all the options in respect of the group's Scottish development sites and encourage any party with an interest to get in touch."
The group’s owner, Stewart Milne, said that the outcome of the sale process was “unexpected” and that the administration would have a “profound impact [...] on employees, sub-contractors, suppliers and customers.”
Milne continued that there had been “significant interest” in the group, with two bids submitted, but that the firm’s bank “has not accepted either bid and withdrawn its funding.”
He added: "I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it. I believe one of the bids could have delivered a comparable, financial return to administration and, crucially, allowed the business to continue to operate, safe-guarding hundreds of jobs and protecting livelihoods."
Stewart Milne Group, which is headquartered in Aberdeen, was founded in 1975. Since the sale of its timber division in 2021, the group has primarily focused on housebuilding operations in Scotland and the North West of England.
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