Stewart Milne in administration

Stewart Milne Group has fallen into administration.

In a surprise development yesterday (January 8), Teneo Financial Advisory was appointed as administrator of the group and six of its subsidiaries, with trading ceasing immediately and 217 roles made redundant.

Teneo said in a statement that “like many in the housebuilding sector,” Stewart Milne had faced significant challenges over the past few years, “with economic uncertainty due to rising interest rates, increasing cost pressure and an associated reduction in consumer confidence”.

The collapse follows an attempt to sell the business, as first announced in April 2022 upon founder Stewart Milne’s decision to retire.

These plans to sell were suspended at the end of that year amidst uncertain market conditions. But in August 2023 it was announced that they had resumed, with the Aberdeen-based business stating that the company’s outlook was now “highly encouraging”.

This followed the housebuilder returning to profit for the year ending October 31 2022 after posting a £13.1 million loss for 2021, aided by the sale of its timber system business. Revenue still dropped from £221.1 million in 2021 to £172.4 million.

According to reports, founder Stewart Milne said he was “devastated” by the “totally …