David McLean placed in administration

David McLean Holdings and its trading subsidiaries David McLean Contractors Ltd, David McLean Developments Ltd and David McLean Homes Ltd have today filed for administration.

Nick Edwards, Bill Dawson and Carlton Siddle of Deloitte have been appointed as the joint administrators.

The Flintshire-based group employed more than 500 staff a year ago before making a series of cost-saving cuts; today it has 320 employees.

Deloitte said the directors had for some time "been endeavouring to secure a consensual restructuring of the group's financial affairs following the downturn in the residential property market."

Dawson commented: "Whilst the property downturn has impacted the group's cash flow, the land and property assets are high quality, and combined with the excellent reputation of the group, should make the house building division an attractive prospect for potential purchasers. We are continuing to trade this part of the business whilst we seek a buyer.

"The contracting division has struggled to generate a critical mass of profitable contracts, and regrettably we have had to take the decision to close that part of the business, other than retaining a significantly reduced headcount to work with customers to complete or transfer limited works on outstanding contracts."

Among McLean's major developments were a joint venture with Nikal in Altrincham town centre, and the redevelopment of the garden festival site in Liverpool with another partner, Langtree.

The company reported a £4.9m loss on turnover of £253.6m for 2007, compared to a £5m profit on £277.4m revenues in 2006.