David McLean debts could be £100 million

Source: Exec Digital UK

Date :29/10/2008 12:05:19

The North Wales construction group has gone into administration with debts which could total as much as £100 million.

David McLean Holdings Ltd, fell victim to the credit crunch and went into administration yesterday, 29 October. Deloitte has been appointed to handle the group’s assets. The David McLean Group employed 320 people, and was one of the largest firms in the area, using many subcontractors. Those subcontractors are now feeling the knock-on effects.

When asked about the levels of debt the company faced, Nick Edwards, joint administrator with Deloitte, stated "it will run into many millions, I would say, getting towards £100m … The group in the previous 12 months until the end of June sold just under 600 units.”

Edwards also stated that "there will be a number of job losses, there already have been a number of job losses. … A lot of it comes down to if we have the ability to sell the homes business as a going concern to preserve jobs.”

The group was founded in 1972 and was once of the largest in the areas with a turnover of £160 million, but the dropping cost of houses, the rising uncertainty of consumers and the lack of available credit sealed the group’s fate.

The group’s contracting division, David McLean Contractors, has been closed, as has David McLean Developments. However, "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 housebuilding division an attractive prospect for potential purchasers. We are continuing to trade this part of the business whilst we seek a buyer,” stated Edwards.