Partner Article

North East based housebuilder goes under

A housebuilder which has offices in Durham and developments throughout the region has gone into administration following a long fight to re-finance through the recession.

Administrators KPMG were appointed on behalf of McInerny Homes, which turned over just £39.8m in 2009, a huge drop from the height of its boom.

Fourteen of the firm’s 161 staff have been laid off immediately upon the administration, with a number of others being consulted on to transfer to other companies within parent company McInerny Holdings Plc.

The seven collapsed firms encompass 32 development sites, of which ten will be immediately transferred another McInerny company, Ludgate Hill Developments, which has signed a deal with a major housebuilder to build out the sites.

In McInerny Homes’ most recent accounts it made a loss of £8.5m on turnover of £39.8m, and then had to write down the value of its land by a further £56.3m. It also had £77.7m of unpaid bank loans.

This was posted in Bdaily's Members' News section by Ruth Mitchell .