A HOUSEBUILDING firm has collapsed into administration with all homes incomplete after racking up hundreds of thousands of outstanding debt.
The homes in Ardrossan could be completed in the future after administrators agreed a way to finance the remaining construction, according to The Herald.
A report on Bellshill-registered Sparkle Berry Homes Limited revealed that former contractors have assessed the remaining costs, with discussions on how to complete the homes having been held over the last few months.
Michelle Elliot and Callum Angus Carmichael, of FRP Advisory, were appointed joint administrators of the firm last month.
In the report, the administrators outlined that the Ayrshire-based development consists of four detached properties which are “substantively complete, subject to a limited number of outstanding matters”.
The report added: “These include minor remedial works and the subsequent issuance of final certification by the local authority. Creditors will also recall that Crowd Property holds standard securities over the site, together with a floating charge.
“Given the advanced stage of completion of the properties, the administrators engaged with the company's former contractors to assess the outstanding remedial works and the associated costs.”
The administrators also stated that the assessment from the company's former contractors was undertaken in a bid to secure final completion certificates for the homes.
The report added that the properties will then be put up for sale on the open market.
“Following completion of these enquiries, the Administrators prepared and presented a detailed cost schedule to the Secured Lender. It was agreed in principle that the administrators would proceed with instructing the necessary works to enable the issue of final build certificates,” administrators said.
“We have been in discussions with Crowd over the last few months regarding the funding of these works. It is now agreed that the administrators will utilise short-term funding provided by Crowd to finance the completion of the outstanding works.”
The Ardrossan site was created in June 2023 and September 2024, with Crowd Property Limited holding three standard securities over.
Their total debt outstanding is in the region of £700,000.
FRP also said: “A formal legal agreement will be required between the administrators and Crowd in respect of this funding.
“Upon conclusion of this agreement, the administrators will proceed to instruct the remaining works, obtain the necessary local authority consents, and bring the detached properties to market at the earliest opportunity thereafter.
“Further updates, together with an outcome of the works and certification will be provided in future progress reports.”
It comes after it was revealed earlier this month that the Stewart Milne Group collapsed into administration owing more than a quarter of a billion pounds.
At its prime, the firm employed hundreds of people and operated more than 35 housing developments across the north east of Scotland, central Scotland, and north west England.
The Stewart Milne Group fell into administrators' hands in 2024, and new documents showed that the firm owed £258 million at the time.
According to the Teneo Advisory report, more than £141m is owed to 1361 unsecured creditors. Among those who were owed money from Stewart Milne Group were the Bank of Scotland, owned by Lloyds Banking Group, to the tune of around £115m, the administrators’ report indicates.
HMRC was also owed the sum of £1.8m, with 196 claims from former employees also being due around £268,000.
