Social housing contractor John Laing Partnership has fallen into administration.
PwC was appointed joint administrator for the group's social housing businesses Impala Partnership and John Laing Partnership, plus its private-for-sale arms JLP Homes and Intro Homes (Stevenage).
John Laing Partnership, based in Hertfordshire, was formerly聽the social housing arm of the John Laing Group. It became independent following a management buy-out in 2002. A year later, the firm diversified into the private housing market with a 'starter home' business, Intro Homes.
The group employs 51 people. All staff, apart from 10 people required to assist the administrators in the operation of the business will be made redundant.
Zelf Hussain, joint administrator and director at PwC, said: 鈥淭he group has experienced significant cash flow difficulties due to a number of factors including the deterioration in the housing market, delayed recovery of customer retentions and a lack of significant new contracts. The group鈥檚 board was unable to identify a viable way forward and were left with no option than to appoint administrators.
鈥淢y team and I will focus on working with employees, clients and suppliers to determine the most appropriate way forward over the next few weeks.鈥�
He added that the administrators were working closely with employees affected by the closure of the business to ensure they receive the support they need to assist with their claims for redundancy and other compensatory payments.
Peter Taylor, managing director of John Laing Partnership, said: 鈥淚t is with much regret that, following a meeting of the board of directors, Impala Partnership, John Laing Partnership, and Intro Homes (Stevenage), have appointed PwC as administrators.
鈥淔ollowing the crash in the private housing market, the fortunes of the company have been further exacerbated by the deepening crisis in the affordable housing sector. This has resulted in secured contracts being significantly delayed and an extremely competitive tender market relying upon zero or negative margins. Furthermore, difficulty in settling final accounts has had a major impact on cash flow.
鈥淚n order to protect the interests of all creditors, the board was faced with no alternative than to appoint administrators.鈥�
Intro Homes (Lettings) has not entered administration, and will continue to trade as normal.
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