95 jobs threatened as homebuilder goes into administration

Ally McRoberts • Published 19 Feb 2010 11:34 2 Comments

THE Thomas Mitchell Group, which has been building houses in Fife for over 50 years, has gone into administration with 95 jobs on the line and a number of sites abandoned.

Housebuilding at two sites in West Fife, at Primrose Gardens in Rosyth and North Knowe, Crossgates, was halted and workers left when they were told the news.

The firm, whose headquarters is in Glenrothes, is a family-owned homebuilder which comprised of four companies : Thomas Mitchell Homes Limited - the main housebuilding business ; Thomas Mitchell Timber Frames Limited; Thomas Mitchell Developments Limited - a property investment division - and Addacabin Limited.

A separate company which holds investment properties and land for future development by the homes business - Mitchell Thornton Limited - has also been affected.

Blair Nimmo and Gary Fraser, of KPMG Restructuring, were appointed as joint administrators of the Thomas Mitchell Group on Wednesday, at the request of the company's directors.

The firm was founded in 1958 by the father of current directors Alen and Graeme Mitchell.

In the year to 31st December 2009, the group had an annual turnover of £29.8m (£38.9m in the year to 31st December 2008) and sold 143 homes (115 in 2008).

The Homes company was affected by the unprecedented downturn in the housebuilding sector which had an adverse impact on house prices, margins and land values.

The Group as a whole had been suffering from significant cash flow pressures, which has led to the directors moving to appoint administrators.

While it is still an early stage in the administration, various options are being considered including the sale of some or all of the businesses.

Mr Nimmo said, "It is no secret that the UK and Scottish housebuilding sectors have been hit hard by a number of factors in the economic downturn, all of which have had a detrimental effect on the day-to-day running of this well-established and family-run business."

All employees have been informed and the administrators are working with the Group directors to maximise the return from the company's assets.

Anyone with an interest in the assets of Thomas Mitchell Group Limited or its related subsidiaries should contact Blair Nimmo on 0131 222 2000.

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• 

  davey boy
  Unregistered User
  Feb 22, 08:41
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  Basically it costs too much to buy a new house these days and people dont have the money to do so . estate agencies sharge extreme loans for buyers and many buyers live on the edge regarding family budgets to meet mortgage repayments ( which are governed by an out of date rate of inflation method of calculaton) all mortgages shouldnt be lumped with rate of normal inflation.
  
  Why has anyone when needing to buy a house require a loan anyway ?. we all know new housing for the average £25,000 salaried worker is impossible ( based on a 2 bedroomed house) i.e. agencies are offering longer years repayments - 2years reduced pay back . Open your eyes this government and all governments past have turned a blind eye to basic house prices - theyve pandered to the middle income and higher brackets when costing the inflation.
  
  p.s. the rate of inflation is the lowest for years but beware this cant go on forever and more misery will be incurred when the house pricies and costs go up.
  
  Recommend?   Yes 0     No 0

• 

  D Isgusted
  Unregistered User
  Feb 26, 18:26
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  I am appalled at the sensationalist article relating to 'House Buyer Misery' following Thomas Mitchell collapse. Instead of the Press assuming the role of responsible publisher you have made up a story which bears no truth. As a resident of the housing estate in question, I have never experienced any concerns in relation to those 'exposed' in your article. The Builder and Council have confrmed there are bonds in place that will cover the cost of completing the road and common ground therefore I would have preferred to see the Press focus on this aspect rather than print these alleged events. What evidence does thePress actually have regarding the allegations it has made in the other article - I would question if there is any.
  
  Recommend?   Yes 0     No 0

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