More than 200 jobs lost as housebuilder Stewart Milne goes bust

The housebuilder had been for sale since December 2022

Housebuilder Stewart Milne Group has entered administration with the immediate loss of more than 200 jobs.

The construction firm, based in the north-east of Scotland, said it faced "significant challenges" since Covid.

It comes after an attempt to sell the company by its chairman Stewart Milne fell through last year.

Administrator Teneo said 217 jobs would be affected, with hundreds of other sub-contractor roles also expected to be impacted.

Six of the company's subsidiaries have also been placed into administration, but its north-west England arm has not.

What happens at the unfinished sites?

Trade roles working on the housebuilder's sites will also go as a result of the firm's collapse. The administrators said sub-contractors should not undertake any more work for the business, and site access - for example to collect equipment - should not be attempted unless approved by the administrators.

Teneo said the company was "exploring its options" but was looking to work with other developers on the completion of unfinished sites.

Buyers who have purchased or reserved homes from Stewart Milne Group and have not yet moved in will be contacted by the administrators directly.

Current residents with outstanding works are asked to contact the [e-mail] for further information.

The firm is looking to work with developers on the completion of unfinished sites

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."

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The house builder, which develops sites across north east and central Scotland and north west England, was put up for sale in 2022 after its founder Stewart Milne announced his intention to retire, but the sale was suspended due to "economic uncertainty" and market conditions. It was relisted for sale in July 2023, however failed to attract a viable buyer.

Founder Stewart Milne said he was 'devastated' by the decision

The company reported a boost in profits for the 21/22 financial year having sold its timber systems business in December 2021.

It recorded pre-tax profits of £16.5m for the year to the end of October 2022.

However, turnover fell year-on-year by £48.7m to £172.4m as house sales fell by nearly 30% to 583.

A spokeswoman for Lloyds Banking Group stated that they had attempted to find a solution that would place the business on a "sounder financial footing" and avoid insolvency.

She added: "Unfortunately, despite several years of support and forbearance, including multiple maturity extensions to the borrowing, this has not been possible in this instance."

'Totally unexpected outcome'

The business was started by former Aberdeen Football Club chairman Stewart Milne in 1975 after he qualified as an electrician.

He postponed his retirement in an attempt to secure the future of the firm amid talks with "seriously interested parties".

Mr Milne, 73, said: "I am devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, sub-contractors, 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.

"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."

SNP MP for Aberdeen South, Stephen Flynn, said the news would be a bitter blow to workers and all those involved with the company.

Teneo said 54 employees had been retained to assist in the administration process.

An additional 58 workers from the north-west England operation have also been kept on.