Homes England successfully reclaimed over £9m from the insolvent Stewart Milne Group after initially funding £1.6m to facilitate the administration process.
- The recovery was enabled through the sale of key development sites owned by Stewart Milne Homes North West England.
- Homes England acted as the senior secured creditor and expects to be fully compensated by the end of the administration process.
- Teneo’s report indicates substantial losses for the Bank of Scotland, which will not recover the full amount owed.
- The collapse of Stewart Milne Group resulted in significant job losses and financial repercussions for unsecured creditors.
Homes England’s recovery of £9m from the collapsed Stewart Milne Group was a strategic move facilitated by a £1.6m loan to administrators. This funding ensured the continuation of essential activities like payroll and site security at four critical development sites in Lancashire and Cheshire. The completion of the sale of these sites to Elan Homes for approximately £18m was a pivotal achievement, safeguarding the development of 198 residential units.
Stewart Milne Homes North West England entered administration a few days after the collapse of its parent company. Homes England, having lent money to the group since 2018, was left with a substantial outstanding amount when the collapse occurred. The agency’s financial interventions during the administration were crucial in maintaining the progress at the development sites, demonstrating its role as a senior secured creditor.
As the administration progresses, Homes England is poised to receive the remaining £100,000 owed. This situation contrasts with the plight of other creditors. The Bank of Scotland, a major creditor, faced a significant shortfall, with £107.9m owed and little prospect of full recovery. The administration report projected a grim outlook for unsecured creditors, with the majority of their claims unfulfilled.
The wider Stewart Milne Group’s collapse was marked by its inability to secure a buyer despite ongoing efforts, leading to the business’s shutdown and job losses exceeding 200. Founder Stewart Milne expressed profound dismay at the failure of the sale process, acknowledging the detrimental impact on employees and stakeholders.
Homes England’s financial recovery showcases effective creditor strategy amid widespread industry challenges.
