City Lofts faces fight for life
- Published: 03 July 2008 09:59
- Author: Alasdair Reisner
- More by this Author
- Last Updated: 03 July 2008 09:59
Developer hit by downturn in consumer demand for its city centre apartment schemes
Specialist apartments developer City Lofts was said to be on the brink of collapse this week.
Industry sources said the Harrogate-based firm, which was set up 12 years ago, was facing the prospect of its projects being put into receivership after being hit by the impact of the credit crunch.
One senior figure said: "We understand they are still trading but face a difficult week."
The news follows an exodus of senior staff at the firm with the recent departure of the developments arm's managing director.
The firm confirmed this week that Nicholas Moody had left, following the April departure of finance director Nigel Denby. Last autumn, group chairman John Holt and non-executive director Graham Berry also announced their departures from the firm, following a move to de-list the business from AIM.
The company's shares traded on small and medium sized company trading service Sharemark but City Lofts ceased to be available through the system on Monday due to a complete lack of buyer orders.
The group's last set of interim results for the year to June 2007, released last December, saw the firm record a loss of £1.6 million on sales of £41.8 million.
This represented a major reversal of fortune, having previously booked a £9.5 million pre-tax profit on sales of £67 million for its last full year results to December 2006.
Jobs currently on site include Shepherd building a 32-storey tower for the firm in Sheffield.
