A SCOTTISH housebuilding company has gone into liquidation with jobs at risk.
Morlich Homes Ltd, based in Elgin, first constructed a house back in 2010 and is known for creating “high-quality” homes along the Moray coast.
However, local reports suggest the firm has ceased trading with the Press and Journal reporting Aberdeen firm MHA have been brought in to manage the process.
In a statement provided to the Northern Scot, Michael J M Reid of MHA said: “A statement of affairs and a report is going to be sent to all loan creditors.
“I can tell you that five employees will be receiving a letter tomorrow advising of their redundancy within effect from five o’clock tonight (September 23) and I can confirm that the reason for insolvency was just, as all developers are seeing, just a drop off in individual property sales at the property market.
“It’s not a sudden lack of demand, but the slowly decreasing demand over the last eight or nine months.”
In a separate statement given to The National, Reid added: “Due to the increased costs of construction and worsening market conditions, plot sales slowed down considerably.
"Construction costs of the factory that MHL built in Elgin were in excess of the projected sum, causing cash flow problems.
“After a full review of the options, MHL ceased trading activities permanently shortly prior to liquidation in order to protect all stakeholder groups.”
The main MHL assets are the factory in Elgin, nine serviced plots with planning in Elgin and a former showhouse in Buckie.
Current indications suggest that asset realisations should be sufficient to settle the secured creditor in full, leaving a residual balance for preferred and unsecured creditors. These assets are being subject to an independent valuation.
Other assets include plant, machinery and vehicles subject to hire purchase and sundry debtors which are being valued by Thainstone Specialist Auctions, Inverurie, and will be sold imminently.
The Press and Journal has reported that customers calls and emails are not being answered by Morlich.
Councillor for Fochabers and Lhanbryde Marc Macrae said he was “deeply saddened” to hear about the company entering liquidation.
“The company were one of many building quality homes across the region and it is disappointing to hear of any company failing in these challenging times,” he said.
“I would hope that the liquidators will be able to recover monies owed to creditors wherever possible and that the workforce are supported as much as possible to obtain suitable employment.
“Thoughts are with all those concerned as well as those who perhaps have a home partly constructed and wondering what will happen next.”
In 2021, the firm announced it was building a new £1.1 million production facility for sustainable modular timber frame homes in Elgin, which was expected to create around 14 new jobs.
