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.