Struggling builders call in administrators
THE North East’s beleaguered housebuilding sector has taken another hit after administrators were called in to try and rescue to two businesses in Newcastle.
David Barlow Homes Limited and David Barlow Property Limited have called in administrators Andrew Haslam and Simon Lundy of Begbies Traynor in Newcastle after they fell well short of targets as a result of the downturn.
The businesses, based at Airport Industrial Estate, have already shed ten of their 16-strong workforce, with the future of the managerial team now in doubt.
The firms have had to pull out of their current developments in Seaham, Newcastle and North Alnwick, with administrators currently deciding whether to sell on the sites as they are or add to their value by hiring a third party contractor to complete them.
Joint Administrator Andrew Haslam, said: “At this time, it is too early to say whether we will be successful in selling the group as a going concern, however, interest has been shown in the group.
“The well publicised dip in the property market has led to the group’s sales falling behind projected levels and the impact on cash flow has meant additional support being sought from funders, however, there is a limit to how far this support can be stretched.”
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