Stewart Milne Group has filed for administration, a day after English division of Scottish housebuilder began the administration process
Stewart Milne Group is the first casualty of 2024, as the Group has followed the subsidiary wing in filing for administration.
Appointed administrators Teneo shut all sites yesterday afternoon, with at least 217 jobs lost of the thousand-strong workforce and associated contractors.
Teneo said: “No further construction is being completed, at this time by the companies as a result of the administrations.
“The administrators will shortly be contacting all known customers with reservations, creditors, suppliers, subcontractors and hired plant/equipment providers.
“If you are a supplier, please note that no further orders should be fulfilled, and delivery to the sites should not be attempted, unless otherwise advised by the administrators.
“If you have outstanding invoices, please note that a claim will need to be submitted to the administrators.”
“Immediate redundancies”
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 Limited 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.”
Founder Stewart Milne was “devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, subcontractors, suppliers and customers.
“Stewart Milne Group was up for sale and, following significant interest, two bids were submitted. The bank has not accepted either bid and withdrawn its funding which left the directors with no option but to appoint administrators.
“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.”
The whole group has been up for sale – intermittently – since 2022
The administration development follows a turbulent few years for Stewart Milne Group.
After reporting losses of £34m, the firm liquidated its subsidiary Countesswells Development, as well as selling Stewart Milne’s timber frame business to the Donaldson Group in 2021, generating a combined £59m.
But in April of the next year, founder and principal shareholder Stewart Milne announced his plans to retire after nearly five decades, and the entire group was put up for sale.
Speaking at the time, Stewart Milne said “The unprecedented events of the last two years have forced many to re-evaluate and, after considerable soul-searching, I have decided that the time is right to step back from the business I founded to prioritise my time for family, friends and other ventures I want to pursue…We are superbly placed to capitalise on the favourable market conditions and demand which are set to continue in the near-term.”
