Scottish housebuilder collapsed earlier this week after failing to find buyer

An English subsidiary of housebuilder Stewart Milne is expected to follow its Scottish parent into administration later this week, according to its backer Homes England.

Stewart Milne Homes North West England Limited, which sells homes under the Stewart Milne brand, was among six subsidiaries placed into administration with the parent company on Monday.

However, the business responsible for building homes in the region, Stewart Milne Homes North West England (Developments), has a separate funding structure and was not placed into administration.

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Stewart Milne collapsed into administration at the start of the week after failing to find a buyer

Administrator Teneo said a strategy was “being discussed with Homes England” and that there should be “more clarity” by the end of the week.

According to the firm’s latest accounts, liabilities under the category ‘other loans’ were worth a total £14m, with £9.2m falling due within less than one year.

It said: “Other loans comprise amounts advanced to the group by the government agency, Homes England, to fund purchases of land for our NW England region.”

>> Scottish housebuilder Stewart Milne enters administration

A Homes England spokesperson said: “We are aware that the majority of the Stewart Milne Group (SMG) of companies has been placed in administration with an English subsidiary that Homes England has a relationship with likely to follow later this week.

“Our immediate priority is to work with the administrator to support the continued delivery where possible of those housing developments we’re involved in.”

Stewart Milne’s North West business had pipeline schemes in Stockport, Offerton and Congleton. According to Teneo, 58 staff in the region have been retained to assist with the administration process.

It comes as trade union Unite voiced its anger at the lack of notice given to workers at the collapsed housebuilder.

Unite represents more than 60 tradespersons at the firm, working across Aberdeen, Dundee, Edinburgh and Glasgow, and has promised to explore a protective award against the business.

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.”

A protective award can be awarded where 20 or more employees are made redundant because an employer did not consult before any redundancy announcement, with employment tribunals able to make various awards from 45 to 90 days of full pay.