City Lofts goes into administration

Harrogate-based developer City Lofts has gone into administration.

The £41m firm was behind a series of high-profile schemes in the North of England, including projects in Leeds, Manchester, Newcastle and Harrogate.

Ernst & Young was appointed to act as administrator for City Lofts Group and its main subsidiary, City Lofts Developments on Friday.

However several individual operating companies that are carrying out the company's current developments continue to trade with the intention that the developments continue. These include: City Lofts (Half Tide Dock) Limited (Liverpool) and City Lofts (Sheffield) Limited.

In a statement, Ernst & Young said: "It is anticipated that the administrators will review the position of the two holding companies with the intention that the group’s current individual developments under construction should be able to continue unaffected so that value is maintained in the wider group."

The group reported a profit of £6.3m for the six months to 30 June 2007 on a turnover of £41.8m. It is not known at this stage whether it will be sold as a going concern.