Devonshire Homes sank into administration earlier this summer
Unsecured creditors of collapsed housebuilder Devonshire Homes have been told they are unlikely to get any of their money back.
The Devon-based firm was working on six residential developments at the time of its administration earlier this summer.
An update by administrators at Alvarez & Marsal Europe said unsecured creditors are owed just over £35m.
The report says that turnover in the year to September 2024 was £52m but this had fallen to £37m in the 18 months to March this year.
It added: “The Company had experienced increasingly challenging market conditions, consistent with wider pressures across the sector.” It said that Devonshire Homes brought in Ernst & Young to find a buyer for the business at the start of last year but this proved unsuccessful with administrators being appointed on 18 June. Most of the 44 employees were made redundant.
The report added that preferential creditors, which include HMRC, are owed just over £600,000 and unlikely to get a dividend. But secured creditor Lloyds Bank, which is owed £7.8m, has been told it will get some money back.
Alvarez & Marsal Europe said the administration affects Devonshire Homes Limited only and does not extend to other Devonshire Homes-branded developments or associated companies.
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