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Administrators called in over Blackburn town centre development
9:42am Tuesday 11th November 2008
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ADMINISTRATORS have taken over Margo Grimshaw’s £15million housing development in Blackburn town centre.
Accounting giant Pricewaterhouse Coopers will look to sell off the uncompleted multi-million pound project to a developer, or part of the site could be converted into a hotel.
The leader of Blackburn with Darwen Council said it was a “tragic” fate for the Cathedral Court development.
Ms Grimshaw, who recently revealed she had already invested £6million in the scheme along with the bank, said she had been told not to comment by her lawyers.
A spokeswoman for Pricewaterhouse Coopers confirmed the firm had been appointed as general administrators to Cathedral Court (Blackburn) Ltd.
She said the project had been a “victim of the downturn in the property market” and said a “number of options” were being considered for the site, which represented “a fantastic opportunity to capitalise on recent development in the town”.
In September workers left the site with just one phase of the complex completed.
The credit crunch was blamed for making it hard for buyers to get mortgages.
The proceeds from any sale will be used to pay off creditors.
Council leader Colin Rigby said: “It’s a shame for Margo, because she was trying to finish off the good work that was started in Fleming Square.
“I’m really sorry it’s gone the way it has for her. It’s just the time we live in I’m afraid.
“She’s been a businesswoman in the town for many years, and it’s tragic that such a thing should occur.”
The £15million development was initially intended to create 79 apartments and 13 shops.
The 11-flat first phase, a tower with top floor penthouse suites at the top of Mincing Lane, is complete.
The next two buildings containing 16 flats are part-built in Market Street Lane.
Work had not started on the remaining 52 apartments in the final phase in Market Street Lane.
Margo said a few weeks ago that a hotel chains had expressed in that site.
SELL-OFF PLAN: Margo Grimshaw at the site of the housing project before the downturn in the property market
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