Westbridge Homes goes into administraton

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Tuesday, November 04, 2008
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This is HullandEastRiding

An East Yorkshire property development firm has gone into administration, owing a number of businesses thousands of pounds.

Westbridge Homes Ltd, which is based in South Cave and employs 31 staff, went into administration after experiencing significant cash flow problems due to conditions in the housing market.

The Mail understands the firm owes £33,000 to TAS Communications, of Beverley, and more than £20,000 to D&D Decorators, of Hull.

The company is also understood to owe £11,000 to ICS Cleaning, of Hull, and an amount to DLJ Associates in Leeds.

Westbridge Homes Ltd had established a reputation for quality and service with popular developments at prime residential locations across Yorkshire.

Today, Philip Hutson who runs ICS Cleaning and claims he is owed £11,000 by the company, said the knock-on effects almost put him out of business.

Malcolm Daddy, managing director of D&D Decorators in Hessle Road, west Hull, said: "I am very annoyed about it. In the current climate this has affected us a lot.

"We were aware there was trouble because payments were not forthcoming."

A letter sent to creditors by administrators Ernst & Young said the firm was unable to indicate whether there would be a "surplus" of cash available for those owed money.

The company's directors, Steve Vessey-Baitson and Peter Lee, are required to submit a statement of affairs to enable a full financial position to be made available.

Today, Mr Lee said the company went into administration because the company lost more than £1m of contracted sales not completing in the space of a month.

He said: "The reason the company went into administration is because we are owed money ourselves. We ended up with a development where we had people that were on contract to buy but would not or could not complete because of the housing market.

"That left us with a massive hole in our cash flow."

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33 Comments

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    by Claytons Fold, Gilberdyke

    Monday, November 24 2008, 3:38PM

    “Well i feel for everyone involved who has lost money in this saga... But what happens to all the unfinished works IE roads, pavements and car parks on unfinshed developments such as claytons fold??? Some people have paid lots of money for properties on brand new developments hoping for a brand new spanking finshed product and the drains are still sticking 3 inchs out the ground, pavement slabs are loose and breaking cause there not fixed!.. I am one of these people and would like to know what will happen???”

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    by Paul, East Riding

    Wednesday, November 12 2008, 2:20PM

    “If these directors did anything dishonest then I am sure it will come out at some point. If; as is the case with most directors they simply hit the wall, then they deserve a break. Nobody ever talks about the administrator, in this case Ernst & Young. The fees that these guys will be taking would no doubt shock you all. Good luck to all who have been affected by this failure.”

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    by Andy, East Riding

    Wednesday, November 12 2008, 1:29PM

    “I hear what people say about the housing slump and I don't doubt that the directors are decent people, however, there is a suggestion that they have been spending the money they should have been using to pay staff and suppliers to fund a lavish lifestyle of houses valued in millions, new cars and all sorts of other things. It could be that these guys have been trading insolvently for some time and extracting the money - who knows? These things happen sometimes but we don't know that that's the case here.. I would suggest that if anyone has any evidence to suggest that they have been using the business to front the doing up of their homes or other inappropriate things that they contact the police or the administrator. If you are a contractor that has been asked to do work on either of their houses and then told to bill the company I am sure there are people out the who would be interested in talking to you. There may be some truth in some of thses allegations but let's not speculate about their behaviour, good or bad on here. Find out the facts and take action. Otherwise why not draw a line under the matter as nothing further can be achieved by adding comments on this site? Or can it? Perhaps the Hull Daily Mail should mount an investigation into the allegations?”

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    by J J, Middle East

    Monday, November 10 2008, 3:28PM

    “I like thousands of other people in the construction industry have suffered because of the slump in the housing market in the Uk so felt compelled to write to you expressing my disgust at some of the comments made about the Directors of Westbridge Homes. I was a small subcontractor who is owed money by larger house building companies and believe me getting paid was getting harder by the day so I decided to get off my backside and do something about it and look for work elsewhere! Stop whinging at people who are also suffering because of the UK economy, These people have worked extremely hard to build up their business and have been victims of a situation beyond their control. I have personal knowledege of Mr Vessey-Bateson and Mr Lee and I know as fact (not hearsay) that they have very heavy hearts at this time and had no option left to them but to take the decisions that they have taken. We as subcontractors that have worked for such companies have all made our profits along the way and we should have only empathy for these men. We should not be 'kicking' them when they are already down. After all who is to say who will be next in a long line of companies that could have their doors closed too. I also know as fact that these men are good, honest people who put the interests of their employees and subcontractors first. So wake up and smell the coffee, this has not been personal against any individual, so stop making it personal against them! The very best of luck to all those who are trying to make a living in the UK in what are terrible times for ALL concerned.”

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    by Sara, Hull

    Monday, November 10 2008, 9:39AM

    “Of course people are in business to make a profit otherwise there is no point , it doesn't mean to say you are ripping people off. Also if the Westbridge directors have carried out fraudulent acts I would hope the police will investigate as it is a crime. If not it is only fair to let the two directors get on with sorting their lives out.”

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