MERCHANT Homes Partnerships has appointed provisional liquidators following ‘particularly challenging’ trading conditions.
The Glasgow-based housebuilder specialised in private and social residential housing and at its peak achieved £21 million turnover.
However, provisional liquidators, Opus Business Advisory Group, said that current trading conditions have proved to be ‘particularly challenging’ with increasing costs, inflationary pressures, unforeseen delays to new contracts, and a general downturn in buyer confidence across the sector resulting from the rise in interest rates.
This has 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, Opus said that it became apparent that the directors could no longer continue to trade, and had no option other than to take the decision to seek the appointment of provisional liquidators on 20th December.
Mark Harper, of Opus Business Advisory Group, commented, “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.”
