BURY-based Kiely Developments, which repeatedly courted controversy and criticism, has crashed with debts of around £4million along with 45 job losses.

Now, administrative receivers appointed by the collapsed company's bankers are desperately trying to identify what they can sell to help compensate out-of-pocket creditors.

This will primarily involve selling Kiely housing developments under construction at 13 sites across the North West, either individually or in packages.

And some of the 45 office and administration staff who lost their jobs last week are back working with the receivers at the firm's Castlecroft headquarters to achieve a sale of Kiely's remaining business assets.

Kiely Developments, which also trades at Heritage Homes, was run by brothers Paul and Shaun Kiely. Controversy, which dogged the company for many years, came to a head in the past few weeks following a hard-hitting television documentary on Kiely's activities and a critical Commons motion signed by 11 North West MPs.

The prelude to the receivership was the closure a fortnight ago of the four-strong chain of Dillons Estate Agents, run by Paul Kiely, and the loss of 17 staff employed by Kiely Developments and Heritage. On Monday, the cash crisis resulted in Arthur Andersen partners David Duggins and Simon Allport being appointed as joint administrative receivers.

They are reviewing the company's financial and trading prospects before deciding on the most appropriate strategy for the receivership.

Another objective is to take steps to ensure the safety and security of Kiely's building sites and how best to complete outstanding construction works.

Mr Allport said: "The sites, spread across the North West, are in various stages of completion. Our objective is to achieve the sale of the business assets. This could involve selling sites, packages of sites or even individual houses."

The Bury Times understands many of the Kiely staff who lost their jobs are owed money by the company - a fact not denied by the receivers.

Although Mr Allport declined to confirm Kiely's had collapsed with debts of up to £5 million, he did say: "We are investigating the finances of the company and writing to all their creditors asking them to submit their claims."

Kiely house buyers with warranty claims and complaints against the company should write to the administrative receivers c/o Kiely Developments, Durham House, Castlecroft Court, Bury.

Following the closure of Dillons, Holcombe estate agents Rayson Wilshaw have negotiated to take over a proportion of their agreed sales to see these through to completion.

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