Leeds-based Camstead Homes has fallen into administration, with 20 members of staff made redundant.
James Clark and Howard Smith from Interpath were appointed joint administrators to Camstead Limited, Scotfield Group Limited and Yelcon Limited on 19 November 2024, together known as Camstead Homes.
The companies currently have three developments underway, comprising Blackberry Walk in Derwenthorpe, Tailors Green in Shepley and The Heath in Adel. Previous developments include Bradwell Springs in the Peak District and Green Lane Mills / Weavers Beck in Yeadon.
Like many companies operating across the construction sector, Camstead Homes had experienced sustained trading difficulties over 2024 due to various economic pressures, which in turn, led to cash shortages and increased pressure from suppliers.
While the directors sought to explore options to address these issues, unfortunately a solvent solution could not be found and the decision was taken to seek the appointment of administrators.
Following the appointment of the administrators, all work that was scheduled to be completed by the companies will be paused while the Joint Administrators seek to find solutions for all sites.
James Clark, managing director at Interpath and joint administrator, said: “2024 has been another challenging year for the building and construction industry, with housebuilders continuing to battle with the impact of rising raw material costs, wafer-thin margins and the impact of high interest rates and rising mortgage costs on consumers.
“While the Government’s planning reforms have given hope to many across the industry, unfortunately, the trading difficulties encountered by Camstead Homes proved too challenging to overcome.”
James Clark continued: “We appreciate news of the administration will cause a great deal of concern for those homeowners and residents of sites where development work remains underway. Our immediate priority is to work with key stakeholders to find alternative solutions which may enable work across these sites to be completed.
“In particular, we will be working with our appointed agents to market the Blackberry Walk site at Derwenthorpe. We are hopeful for significant interest from this process and would encourage parties interested in acquiring this site to make contact with us and our appointed agents, Watling Real Estate, at the earliest opportunity.”
The joint administrators have retained two members of staff to assist them while they explore options for the sites. Regrettably, however, 20 members of staff have been made redundant. The joint administrators will be providing them with the support required to make claims from the Redundancy Payments Service.
