Buyer sought after building firms collapse
- Published
Deveron Homes was established in 2002
Two building companies have collapsed after being hit by contract delays and "challenges" in the Aberdeenshire housing market.
Huntly-based Deveron Homes and Deveron Construction called in administrators from KPMG this week.
Deveron built residential homes, mainly in Aberdeenshire, and provided design and build contracts for housing associations in the north of Scotland.
Deveron Homes was established in 2002 and the construction arm in 2008.
Five of the firms' 14 employees have been made redundant with immediate effect.
The remaining staff have been retained to help the administrators realise the companies' assets - including four sites currently being developed in Burntisland, Keith, Kemnay and Peterhead - alongside various contracts.
The administrators said they were "rapidly exploring whether an early sale of assets can be secured".
Joint administrator Blair Nimmo said: "Deveron Homes and Deveron Construction are well-known businesses in the north east and provide a significant source of employment in Huntly through the construction supply chain.
"Disappointingly, market conditions and contract delays have required both businesses to cease trading.
"We will do everything we can to seek a buyer who may be able to protect the businesses and maximise recoveries for creditors.
"We will be working with employees and relevant government agencies to ensure the full range of support is available to all those affected."