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Image source, STEWART MILNE
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 the pandemic.
However, two bids for the business, including one from former chairman Stewart Milne, were rejected by the firm’s bank.
Administrator Teneo said 217 jobs would be affected.
Six of the company’s subsidiaries have also been placed into administration, but its north-west England arm has not.
Hundreds of other sub-contractor roles could be hit by the collapse.
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.”
The business was put up for sale in December 2022, but that process was suspended due to “economic uncertainty” and market conditions.
It was relisted for sale in July 2023, however failed to attract a viable buyer.
Teneo said 54 employees had been retained to assist in the process.
‘Significant interest’
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”.
The company reported a boost in profits for the 21/22 financial year having sold its timber systems business in December 2021.
Founder Stewart Milne said he was ‘devastated’ by the decision
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 unit sales fell by nearly 30% to 583.
In a statement, Mr Milne said he was “devastated” by the decision.
He said: “I am 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 The bank has not accepted either bid and withdrawn its funding.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.”
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