The Stewart Milne Group, a prominent housebuilding company based in northeast Scotland, has entered administration, leading to the immediate loss of more than 200 jobs.
The firm cited substantial challenges since the COVID-19 pandemic as a key reason for its decline. Efforts to sell the company by its chairman, Stewart Milne, were unsuccessful last year. Administrative firm Teneo reported that 217 employees would be directly affected, with a significant impact also expected on numerous subcontractor positions.
The administration extends to six subsidiaries of the company, excluding its northwest England division. Workers and subcontractors on the company’s construction sites have been advised to cease work, with site access requiring administrator approval.
Teneo is exploring various options, including collaboration with other developers to complete ongoing projects. Homebuyers with pending purchases or reservations from Stewart Milne Group will be contacted by the administrators. Adele MacLeod of Teneo told the BBC:
“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.”
The housebuilder, operating in northeast and central Scotland as well as northwest England, was initially put up for sale in 2022. The sale process, however, faced suspension due to economic uncertainties and resumed in July 2023 without securing a buyer. Despite a profit increase in the 21/22 financial year following the sale of its timber systems business, the company witnessed a significant drop in turnover and house sales.
Lloyds Banking Group expressed its unsuccessful efforts in providing a sustainable financial solution for the business. The company, founded in 1975 by former Aberdeen Football Club chairman Stewart Milne, an electrician by trade, has faced difficult times, with Milne delaying his retirement to seek a resolution. Mr Milne said:
“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.
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. 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, safe-guarding hundreds of jobs and protecting livelihoods.”
Stephen Flynn, SNP MP for Aberdeen South, recognised the substantial impact of this development on the employees and stakeholders involved. Teneo has retained 54 employees for the administration process, and an additional 58 staff members from the northwest England branch remain employed.
