Housebuilder Stewart Milne Group has been forced into administration, leading to an immediate loss of more than 200 jobs. The construction firm, based in the north-east of Scotland, cited “significant challenges” with Covid blamed as a major contributing factor.
Despite efforts by the company’s chairman, Stewart Milne, to sell the business since April 2022, the financial struggles persisted. Administrator Teneo announced that 217 jobs have been affected, with several subcontractor positions also expected to be impacted.
In a statement released on January 8th, Milne revealed that the company had rejected bids, leaving it unable to continue operations. He said he was devastated about this unexpected outcome, emphasising the impact on employees, subcontractors, suppliers, and customers.
He believed one of the bids could have saved jobs, but the bank, Lloyds Banking Group, withdrew funding, leaving the firm no choice but to appoint administrators.
Insolvency firm Teneo is promising an “orderly wind-down,” and 217 employees have already been made redundant, while 54 will assist with the firm’s closure, and 58 will continue operations in North-West England.
Stewart Milne Group’s North West England sites remain unaffected by the administration due to a separate funding structure.
Founded in 1975, the company showed positive financial results in 2022, but recently faced losses, leading to the sale of its timber frame-making business in 2021. The insolvency was blamed on a tough housing market, an unsuccessful sales process, and challenges from rising interest rates and costs.
Companies covered include Stewart Milne Homes Central Scotland Limited, Stewart Milne Homes North West England Limited, and others.
In a separate issue, Stewart Milne is facing a £20m lawsuit from L&G over alleged defects at its Union Plaza building in Aberdeen.