Stewart Milne Homes goes bust, North West sites remain active for now

The company’s eponymous founder said he is “struggling to accept” the housebuilder’s demise, brought about due to economic unrest impacting the sector. 

Teneo has been appointed as administrator over Stewart Milne Group and Stewart Milne Homes North West England, the Scottish firm’s English division, as well as several other group entities. 

A total of 217 people have lost their jobs, according to Teneo.

The group’s active development sites in North West England are held by Stewart Milne Homes North West England (Developments) Limited, which has a separate funding structure and has not yet been placed into administration, Teneo confirmed.

Some 58 employees aligned with the operations of Stewart Milne Homes North West England (Developments) Limited have been retained. The strategy for the company’s North West sites is being discussed with Homes England, with more clarity expected in the coming days, Teneo said.

However, Homes England said it is a matter of time before that part of the group appoints administrators too.

A Homes England spokesperson told Place North West: “We are aware that the majority of the Stewart Milne Group 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.” 

Founder Stewart Milne had been searching for a buyer for the indebted company after deciding to retire.  

The sales process began in 2022 but no buyer was found. The company’s bank, Lloyds Group, rejected a pair of bids. 

“I am devastated by this totally unexpected outcome of the sale process and struggling to accept it, given the profound impact it will have on employees, sub-contractors, suppliers and customers,” Milne said. 

“Stewart Milne Group was up for sale and, following significant interest, two bids were submitted. The bank has not accepted either bid and withdrawn its funding which left the directors with no option but to appoint administrators.”

Milne added: “I tried everything I could to find a way to achieve a better outcome for the business and the people who depend on it. I believe one of the bids could have delivered a comparable, financial return to administration and, crucially, allowed the business to continue to operate, safeguarding hundreds of jobs and protecting livelihoods.” 

A spokesperson for Lloyds Banking Group said: “When a company experiences financial difficulties, we will always try to find a solution that places the business onto a sounder financial footing without the need for any insolvency process.

“Unfortunately, despite several years of support and forbearance, including multiple maturity extensions to the borrowing, this has not been possible in this instance. We will now work with the administrators, as they consider the best options for the business.”

The group recorded a £16.5m pre-tax profit for the year ended October 31 2022, the last available financial results. However, the group has been unable to weather recent economic uncertainty, according to Teneo.

“Like many in the housebuilding sector, Stewart Milne has faced significant challenges over the last few years, with economic uncertainty due to rising interest rates, increasing cost pressure and an associated reduction in consumer confidence,” the administrator said in a statement.

Adele MacLeod, director at Teneo, said: “The downturn in the UK housing market combined with an extensive sales process not resulting in any viable offers has ultimately led to the need for the directors to place Stewart Milne Group Limited and some of its subsidiaries into administration, regretfully with some immediate redundancies.

“We continue to assess all the options in respect of the group’s Scottish development sites and encourage any party with an interest to get in touch.” 

In the North West, Stewart Milne has pipeline schemes in Stockport, Offerton, and Congleton.