Source: Construction ExecDate :07/07/2008 11:00:33
The administrators have been called in at City Lofts after the credit crunch sliced through the company’s sales book. The apartment developer had last week called in a receiver to sell on 250 of its unsold properties across the north of England. The sale of projects in Birmingham, Cardiff, Leeds, Liverpool, Newcastle and Nottingham was an attempt to shore up the company’s finances, a move which now looks to have been unsuccessful. Ernst & Young has been named administrator for both City Lofts Group and its principal subsidiary City Lofts Developments. A statement from the firm said: "It is anticipated that the administrators will review the position of the two holding companies with the intention that the group's current individual developments under construction should be able to continue unaffected so that value is maintained in the wider group. "New directors have been appointed to the boards of these operating companies, in consultation with the lenders to the relevant developments, in order to strengthen and support the boards and management of these companies."
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