Blackpool owed close to £10m following resi scheme collapse

The council is seeking to recoup £9.5m from a developer who defaulted on a loan issued by the authority to facilitate the delivery of 51 homes in Bispham.

Create Bispham Limited, part of Create Developments, appointed administrators in April after work at Ryscar Way in Blackpool stalled.

A report published by administrator S&W Partners shows that almost all of the £9.6m the SPV owes to creditors is owed to Blackpool Council.

The council and the Create company entered into a development agreement in 2023 to redevelop a seven-acre site off Ryscar Way in Bispham.

Of the 51 homes, 20 have completed with another 31 yet to handover. Administrators estimate that it would cost another £5.8m to complete the scheme.

Blackpool Council declined to reveal the original loan amount when approached by Place North West. Interest has seen the amount owed creep up towards £10m at the point administrators were appointed.

To recoup what the council is owed the administrators have made efforts to sell the Create vehicle’s leasehold interest in the site.

However, after approaching 52 parties, only one bid was received, and that was for the freehold, which the council owns.

Work on the scheme stalled in 2025 when cashflow pressures meant Create could not pay subcontractors, the administrators report states. The council stepped in and appointed Ruby Civil Engineering to continue construction.

A Blackpool Council spokesperson said: “Building houses at Ryscar Way is key to creating more quality housing for the people of Blackpool.

“We plan to continue the Ryscar Way development not just because of the housing need but for home owners already invested in the site. We will now endeavour to support and assist the completion of the site.”