Provisional liquidators appointed to Merchant Homes Partnerships

Provisional liquidators appointed to Merchant Homes Partnerships

Glasgow-headquartered housebuilder Merchant Homes Partnerships has ceased trading, making 22 employees redundant.

Established in 2007 by a highly experience team to provide quality housing, incorporating innovative design, the company is well known and respected in the construction industry, providing building services across Scotland. It specialised in private and social residential housing, and at its peak achieved £21m turnover.

Current trading conditions however have proved to be particularly challenging with increasing costs, inflationary pressures, unforeseen delays to new contacts and a general downturn in buyer confidence across the sector resulting from the rise in interest rates. This culminated in unsustainable cash flow pressures which prompted the directors to rigorously explore all options to save the business and preserve employment.

However, despite significant efforts, it became apparent that the directors could no longer continue to trade, and had no option other than to take the most difficult decision to seek the appointment of provisional liquidators on 20th December.

Mark Harper and Steven John Parker from Opus Restructuring & Insolvency have been appointed joint provisional liquidators.

They stated that “the business has now ceased to trade and, as such, it is with regret that the joint provisional liquidators have made the company’s 22 employees redundant”.

The joint provisional liquidators will be providing support to all employees to assist them in submitting redundancy claims to the Redundancy Payments Service.

Mark Harper added: “For some time, the construction industry has been experiencing extreme challenges. The rate of failure in the sector is at its highest in over a decade, rising material costs, inflation, planning delays, and skills shortages have all contributed to the distress.”

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