Welsh Building Firm Is Latest Victim Of Credit Crunch

A WELSH building company, which was due to develop 19 homes on the site of the Baglan Bay Hotel, have gone into administration.

David McLean Homes, a Deeside-based company, are now under the administration of accounting-firm Deloitte.

But a spokesperson for Deloitte said the housing development side of the business will continue to trade while a buyer is found.

The planning application for the 19 homes was passed in February this year, after almost a year of discussions.

The company was also responsible for the development of Jersey Quay homes on Aberavon Seafront, and homeowners are being urged to carry on as usual.

Paul Evans, who works at Deloitte’s Cardiff office, said: “Homeowners need to go through the same process as before with regards to repairs on their homes.

“There are very difficult circumstances, but we are hopeful that we will be able to sell the company.

“This administration currently won’t affect homeowners in any way, but we don’t know where this is going to lead, so they should carry on as normal.”

David McLean’s directors had been trying to save the company for some time, according to the administrators.

The company has a turnover of £160m and approximately 320 employees, and announced redundancies of 134 employees in the contracting division just days after being put into administration.

Nick Edwards, joint administrator, said: “Whilst the property downturn has impacted the Group’s cash flow, the land and property assets are high quality, and combined with the excellent reputation of the Group, should make the house building division an attractive prospect for potential purchasers.

“We are continuing to trade this part of the business whilst we seek a buyer.

“The contracting division has struggled to generate a critical mass of profitable contracts, and regrettably we have had to take the decision to close that part of the business, other than retaining a significantly reduced headcount to work with customers to complete or transfer limited works on outstanding contracts.”

“We are grateful to staff, suppliers and customers of the business who have given us their full support in this difficult period.”

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