Stewart Milne Group’s administration unveils nine-figure debt pile

Stewart Milne Group's administration unveils nine-figure debt pile

Stewart Milne Group left creditors in the lurch with debts to the tune of a nine-figure sum at the time of its collapse, according to new documents filed at Companies House by administrators.

Ordinary, unsecured creditors, including suppliers, customers, and contractors, are grappling with nearly £60m in outstanding payments.

As of the administration date on 8 January 2024, Bank of Scotland and Homes England are primary secured creditors due £120m, with interest continuing to accrue.

Administrators at Teneo Financial Advisory revealed that even after potential asset sales, there may not be sufficient funds to fully repay secured creditors, including the bank. This predicament leaves over 1,375 ordinary creditors, and counting, facing the harsh reality of receiving no compensation.

There are 550 individual claims amounting to over £8.2m.

At the lowest end of the scale, car retailer Arnold Clark submitted a claim for just 4p, along with three other claims totalling about £8,900. Conversely, the largest claim, for more than £750,000, comes from Aberdeenshire construction firm WM Donald, The P&J reports.

Employee creditors, numbering 329 at the time of collapse, were owed around £9m and have had their contractual redundancy entitlements been paid, according to the administrators.

Founder and chairman Stewart Milne, who owned 77% of the group, transferred his shares to a Bank of Scotland subsidiary, HSDL Nominees, prior to Teneo’s appointment as administrators. The collapse resulted in 217 immediate redundancies, with an additional 31 since 8 January, as the company ceased trading and wind-down efforts continued.

Efforts to sell the housebuilder failed, and continuing construction was deemed against the best interests of creditors. The collapse has left ten projects unfinished. Draft accounts reveal pre-tax losses of £23.3m in the twelve months to 31 October 2023, compared to profits of £16.6m the previous year.

Share icon
Share this article: