Unite exploring legal action after collapse of Stewart Milne Group
More than 200 jobs are going at the housebuilders
Last updated 9th Jan 2024
Unite is exploring legal action in support of its members after the collapse of Stewart Milne Group.
The union represents over 60 tradespeople at the North East based company.
It says workers were given "no notice" before the decision to bring in administrators.
Unite general secretary, Sharon Graham, said: “The announcement that the Stewart Milne group has been placed in administration is grim news. However, what is totally unacceptable is the workforce were given no prior warning nor has there been any consultation with Unite.
“Unite is now actively exploring all legal avenues in support of our members and it is fully determined to get them justice.”
Teneo were appointed on Monday for the housebuilder, which is headquartered in Aberdeen, halting construction on sites across Scotland, with 217 roles being made redundant.
Teneo said in a statement that failure to sell the business or secure a "viable" restructure meant the "difficult" decision was made to place Stewart Milne Group and six Scottish subsidiaries into administration.
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."
Teneo said "no further construction is being completed, at this time" and people who have reserved a home but not yet moved in will be contacted.
Former Aberdeen FC chairman Stewart Milne set up the eponymous business in 1975.
He said in a statement: "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 The bank has not accepted either bid and withdrawn its funding.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."