Scottish housebuilder, Stewart Milne Group, has entered administration with over 200 jobs lost immediately.
The Aberdeen-based developer reported that it had faced “significant challenges” since the pandemic, and chairman, Stewart Milne, had attempted to sell the company in 2022 which ultimately fell through.
The administrator handling the business, Teneo, said that 217 jobs would be lost in total, with more sub-contractor roles likely to be affected by the news. While six of the developer’s subsidiaries have gone into administration, Stewart Milne Homes North West England has not due to its separate funding structure.
Stewart Milne, the former Aberdeen Football Club chairman, founded the company in 1975, and, after announcing his plans to retire, the business had made several attempts to find a buyer.
Mr Milne, 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 The bank has not accepted either bid and withdrawn its funding.”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, safeguarding hundreds of jobs and protecting livelihoods.”
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.”
