Chase Norton parent goes bust
- Published: 04 July 2008 16:23
- Author: Alasdair Reisner
- More by this Author
- Last Updated: 08 July 2008 12:25
- Reader Responses
Chase Midland, the parent company behind collapsed West Midlands contractor Chase Norton, has gone into administration.
PricewaterhouseCoopers was called in on Wednesday to act as administrator for Meriden-based Chase Norton, the construction arm of the Chase Midland Group.
The move came after a week of turmoil for the firm after its banker Bank of Scotland froze the group's accounts leaving it without access to working capital.
Unable to pay its bills, on Monday (30 June) the firm's directors filed notice of their intention to appoint administrators for the £40 million business.
Now Chase Midland has followed suit, appointing Ernst & Young as administrators for it and its Chase Homes (Eastern) division.
It is the homes operation that is understood to have been the downfall of the group, as the credit crunch left it with a number of completed homes that it was unable to sell.
A statement from Ernst & Young said: "Ian Best and Diana Frangou of Ernst & Young were appointed Joint Administrators of Chase Midland plc and Chase Homes (Eastern) Limited today.
"Chase Midland plc is the holding company and main operating company of the £90m turnover group, based in Warwickshire and the West Midlands that directly employs 50 people. The group is a major developer and builder in the residential and commercial property sectors.
"Chase Homes (Eastern) Limited is a property development company and subsidiary of Chase Midland plc.
"The group had been experiencing significant cash flow problems in recent months.
"The administrators are currently assessing the financial position and viability of PLC's business. The majority of the group's subsidiaries are not affected by any insolvency process".
