Deloitte administrating building company

News Article - 28 October 2008
Category: Industry

Deloitte is now administrating building company David McLean Holdings after the difficulties in the property market to its toll on the firm.

The company, which has a £160 million turnover, employs some 320 people but its cash flow was hit hard by the property market slowdown, according to joint administrator Nick Edwards.

However, the house building arm of the business would continue to be run while a buyer was sought, said Mr Edwards, explaining that its land and property assets were "high quality" while its reputation was "excellent".

It was not all good news for the company, however.

"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," he said.

There was further bad news for the housing market after the Centre for Economics and Business Research predicted prices to drop by a quarter by the end of 2009 compared to their 2007 peak.

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