Stewart Milne Group enters administration

North East housebuilder Stewart Milne Group has entered administration with the loss of 217 jobs.

The independent construction firm, which has development sites across Aberdeen, Edinburgh and Glasgow has appointed administrators after two submitted bids were rejected by the bank.

ADministrator Teneo confirmed the loss of 217 jobs whilst 112 roles have been kept on to assist with the administration process.

The company's owner, Stewart Milne says he is "devastated" by the outcome.

In a statement, 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 The bank has not accepted either bid and withdrawn its funding which left the directors with no option but to appoint administrators.

“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."

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.”