Waterfoot property firm hit by credit crunch (From Lancashire Telegraph)

Waterfoot property firm hit by credit crunch

3:48pm Monday 6th October 2008 in

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A PROPERTY firm in Rossendale, which specialised in commercial ventures across East Lancs, is the latest to face court action during the credit crunch.

Bosses of Penny Lodge Properties, registered at Burnley Road East, Waterfoot, face a compulsory winding-up petition at Leeds District Registry on October 14.

The action has been brought by Lex Vehicle Leasing of Heathside Park, Stockport, which is listed as one of the firm’s creditors.

Fellow creditors or the company directors have until October 13 to register support or opposition for the petition.

The property industry has been hit hard by the economic downturn, with a number of familiar names being forced to scale down their operations.

Back in June, property giant Hurstwood, formerly based in Haslingden and a key player in regeneration projects in Burnley, Blackburn and Rawtenstall, announced its building arm, Hurstwood Construction, was being placed in admini-stration.

And in September Hurst-wood Developments and Hurstwood Facilities Management were made insolvent by the Hurstwood Group.

Bosses have insisted the New Hall Hey development, near Rawtenstall town centre, the Weavers’ Triangle overhaul at Burnley and redevelop-ment of Blackburn’s former police station will still go ahead.

Another winding-up petition was served on Burnley firm Stannard Homes, based in Halstead Street, over an alleged unpaid debt by Leamington Spa industry supplier Wolseley UK Ltd.

Established in 1994, Stannard was involved in a building projects in Summerseat, Todmorden and Littleborough.

The announcement regar-ding Penny Lodge, formerly based in Dominon Court, Burnley, and incorporated in 2002, means the firm’s assets have been frozen, pending an application by directors to overturn the ruling.

No-one was available for comment at Penny Lodge’s last registered address.

Housing experts have warned the building trade could take some time to recover, even when the current downturn ends.