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Student Developer Enters Administration

Posted by Richard Ward

Image courtesy of Flickr, Creative Commons

The firm behind the construction of a student accommodation scheme in Lincoln has entered into administration.

One of the family-owned group's funders, Cumberland Building Society, reportedly appointed PwC as administrator earlier this week.

There are also reports that students affected by the delays were told the building would not be finished until 2020 and their contracts had been terminated.

Consisting of 301 bedrooms, the scheme had already faced delays, impacting hundreds of students due to move into the accommodation at the start of term.

The project represents a joint venture between Block Ltd and MWPL Ltd, with a letting agreement in place with the University of Lincoln for 21 years.

A statement from the directors of Preston-based Marcus Worthington Group, which is continuing to trade while in administration, said: "It is with deep regret and sadness that an administrator has been appointed to Marcus Worthington and Company Limited, the construction part of our business."

"The current economic uncertainty has led to us struggling to secure additional borrowing from our bank lenders. We have also been unable to attract fresh funding from other lenders because of these testing market conditions."

"Our primary thought at this time is with our staff. All our employees have been paid up-to-date as of September 30 and we will be supporting those affected in any way we can. We are consulting with our subcontractors and will update them in due course."