Administrators have been called in following the collapse of two North-east building firms which have a development interest in Peterhead.
Deveron Homes Limited and Deveron Construction Limited were placed into administration having faced difficulties in the current economic climate.
Blair Nimmo and Geoff Jacobs of KPMG LLP were appointed as joint administrators on Wednesday last week.
The privately-owned firms operate two service lines from their headquarters in Huntly, comprising the development of private residential homes – mainly in Aberdeenshire – and the provision of design and build contracts for housing associations across the north of Scotland.
Five of the firms’ 14 employees have been made redundant with immediate effect, while the remaining employees have been retained to assist the administrators to realise the companies’ assets, including four sites currently being developed in Peterhead, Burntisland, Keith and Kemnay and Peterhead.
Deveron Homes was established in 2002 and the construction arm was incorporated in 2008. In recent years, both businesses encountered challenges and delays on a number of development projects.
The resulting additional costs, combined with difficult conditions in the sector and the wider challenges in the Aberdeenshire housing market, left the firms with reduced margins, significant levels of debt and a lack of funding to acquire new sites.
Following an assessment of the immediate funding requirement, the directors determined they had no choice but to place both companies into administration to protect the creditors’ position as best as possible.
Blair Nimmo commented: “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.”
Anyone with an interest in buying the assets of the company should contact Geoff Jacobs on 01224 591000 or write to KPMG LLP, 37 Albyn Place, Aberdeen, AB10 1JB.