A FIFE house builder has gone into administration, it was confirmed last night.
Professional services firm PwC confirmed Graham Frost and Bruce Cartwright were yesterday appointed joint administrators to Glenrothes-Lomond Homes Ltd.
The statement said the Glenrothes-based house builder holds land with planning permission for development in Fife and Clackmannanshire. At the time of the appointment the business had only one completed house, in Lochgelly, for sale.
Mr Frost, business recovery services director, said: “The directors have reduced the scale of the business in recent years to the extent that there are no employees and almost no construction activity being undertaken at present.
“Over the coming days we will review the position of the land bank with a view to realising value for creditors.”
PwC were unable to say last night which creditor had called for the company to be put into administration. Fife Council stressed it was not the council.
The Courier revealed on Monday that Fife Council took initial action last Friday to recover £494,000 from Lomond Homes.
The money is outstanding in relation to two planning agreements for developments in Blairhall and Lochgelly.
Sheriff officers were asked on Friday to serve a short form demand requesting payment within 48 hours to avoid the council petitioning the court for the liquidation of the company.
On Monday Fife Council confirmed it had agreed to extend the payment deadline to 5pm on Wednesday. On Wednesday the local authority said it would be inappropriate to comment further.
Lochgelly Labour councillor Mark Hood, who has raised concerns about Lomond Homes’ responsibilities in the town for two years, said he hoped this will be the start of answers for the community.
Eileen Rowand, head of revenue and exchequer services at Fife Council said: “The council has a statutory responsibility to protect public money and we will have to await the outcome of the administration to see what payment we will receive.
“We have been in touch with PwC to confirm our interest.”
Fife Council’s spokesperson for business, education, enterprise and planning, Councillor Kay Carrington, said: “It is always sad to hear about any company going into administration.”
Lomond Homes was established in 1993 and was part of the wider Lomond Group, which is not in administration.
malexander@thecourier.co.uk