McInerney Homes goes into administration

Grant Prior 12 years ago

McInerney Holdings is now in the hands of administrators KPMG who are thrashing out a deal to transfer a number of sites to Miller Homes.

The firm’s social housing business could also be bought by the former management team.

KPMG has been appointed to seven companies within the UK arm of the McInerney Holdings Plc group of companies, at the request of the companies’ directors.

Wigan-based McInerney Homes is a house builder, with additional offices in Durham, Leeds, Wolverhampton and Northampton and with development sites around the North East, North West, Midlands and Yorkshire.

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

The seven companies employ 161 staff and are responsible for 32 private development sites across the UK, together with a number of social and commercial housing development projects.

KPMG intend to transfer a number of the private development sites (see list) to a solvent entity within the group, Ludgate Hill Developments Limited, to allow these sites to be developed with the aim of maximising the return to creditors following consultation with employees.

An agreement has been entered into between Ludgate Hill Developments Limited and Miller Homes to develop these sites once the transfer has taken place.

Work has ceased on those private development sites that are not being transferred to Ludgate immediately, whilst an assessment is made as to whether alternate planning can be obtained on those sites to allow a further transfer to Ludgate.

KPMG has also agreed a second deal in principle with a number of the former McInerney Homes management team to acquire the social housing business, with completion subject to a number of conditions.

There have been 14 redundancies upon appointment of the joint administrators among William Hargreaves commercial contracting employees.

KPMG is now conducting a two-week consultation process with the remaining employees in accordance with TUPE legislation for each of the potential business transfers.

Richard Heis, restructuring partner at KPMG and Joint Administrator, 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.

“We are therefore delighted to have assisted in establishing the agreement between Ludgate Hill Developments Limited and a major housebuilder to build out these sites.  This should assist us in ensuring continuity as far as possible to the customers and suppliers alike.”

Site Details:

A total of 10 sites will be transferred to Ludgate Hill Developments Limited as follows:

Beaumont Court, Pegswood, Morpeth
Beaumont Grange, Bewsey Road, Warrington
Bishops Park, Sunderland Road, Gateshead
Bispham Hall, Billinge
Catreffle, Ruthin Road, Wrexham
Grace, Thornton Road, Bradford
Maddocks Grange, Limekiln Lane, Telford
Whitton View, Rothbury, Northumberland
Wydale, Rutland Avenue, Walker
Zest, Newton Heath, Manchester

The following development sites will remain in the hands of the administrators:

Evolution, Campus Drive, Runcorn
Redcar College , Redcar
Herons Drive, Darlington
Hill End, Mapplewell
Hope, Holes Road, Knottingley
Kensington Gardens, Crossfield Street Blackburn
Marton Road, Middlesborough
Parkfield, Worksop, Stockton
Plains Road, Mapperley
Valley Rise, Auction Mart, Tow Law
Westgate, Worksop
Whitehall Road, Drighlington
Williams Wharf, Latchford, Warrington
Waterside, Broken Cross, Northwich
Greenfields, Kip Hill, Stanley
Highgrove Place, Highgate Mews, Walsall
Beacon Wood, Bloxwich Road, Walsall
Ridings, Middlesbrough
Heritage, Lower Hopton, Mirfield
Belgrave Heights (Mill), Darwen
Hoddleston Mill, Hoddleston
Armitage Road, Rugeley

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