Westbridge Homes goes into administraton
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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