David McLean in administration, contracting to close

Contracting and house building group David McLean has gone into administration.

The firm’s main holdings company and subsidiaries David McLean Contractors, David McLean Developments and David McLean Homes have all filed for administration.

Nick Edwards, Bill Dawson and Carlton Siddle of Deloitte have been appointed joint administrators.

Directors at the Deeside-based firm, which had a turnover of £160m, had been trying to restructure the group’s finances for some time.

Administrator Edwards blamed the property downturn for the group’s troubles.

“Whilst the property downturn has impacted the group’s cash flow, the land and property assets are high quality, and combined with the excellent reputation of the group, should make the house building division an attractive prospect for potential purchasers,” he said.

“We are continuing to trade this part of the business whilst we seek a buyer.”

Edwards said the contracting divison had struggled to generate profitable contracts and would be closed.

Some jobs will stay to complete or transfer works on outstanding contracts.

David McLean employed 320 people but in May this year lost £5m after taking two big hits.

As reported in CJ, the firm suffered a bad debt and irrecoverable work-in-progress from a company that went into liquidation and also was affected by a fatal accident involving a crane that resulted in work stopping on a site for 26 weeks.