Deveron squeezed in north east homes market
The privately-owned firms were put into administration after encountering challenges and delays on a number of development projects.
Additional costs, combined with difficult conditions in the sector and the wider challenges in the Aberdeenshire housing market, left them with reduced margins, significant levels of debt and a lack of funding to acquire new sites.
Blair Nimmo and Geoff Jacobs of KPMG were appointed as joint administrators of both companies to protect the creditors’ position and had “no other option” than to make five of the firms’ 14 employees redundant with immediate effect.
The remaining employees have been retained to assist the administrators to realise the companies’ assets, including four sites currently being developed in Burntisland, Keith, Kemnay and Peterhead, alongside various contracts. The administrators are exploring whether an early sale of assets can be secured.
Mr Nimmo said: “Deveron Homes and Deveron Construction are well-known businesses in the North East and provide a significant source of employment in Huntly through the construction supply chain.
“Disappointingly, market conditions and contract delays have required both businesses to cease trading. We will do everything we can to seek a buyer who may be able to protect the businesses and maximise recoveries for creditors.
“The firms have an integrated infrastructure together with a property portfolio and various ongoing contracts. We would encourage any party who has an interest in acquiring both the businesses and assets to contact us as soon as possible.
“We will be working with employees and relevant government agencies to ensure the full range of support is available to all those affected.”