200 Derbyshire homes in danger as construction firm fails

Original Source: 200 more Derbyshire homes at risk as construction firm goes bust

A building firm went bankrupt, leaving council leaders seeking for new contractors to finish hundreds of homes. Robert Woodhead Ltd, which abruptly stopped operating last Thursday (September 15), was contracted to build nearly 200 homes for North East Derbyshire District Council (NEDDC) in Tupton.

The firm was also contracted to develop up to 400 Bolsover Homes for BDC. The Woodhead Group’s construction arm claimed to be Chesterfield Borough Council’s “main contractor’ on its website.

NEDDC formed Northwood Group Ltd. with Woodhead Regeneration Ltd. and loaned half the project’s financing. Councillor Alex Dale and director of growth and assets Matt Broughton remain Northwood directors alongside Leo Robert Woodhead and Christopher Simon Tutin, although the council says the Oak Field’s development is not in jeopardy.

A NEDDC representative said that Robert Woodhead Ltd. built Ankerbold Road’s Oak Fields. Northwood, the council’s joint venture firm, is developing the site. Work is ongoing to determine the entire impact on the project and supply chain before selecting a new lead contractor.

Robert Woodhead Ltd has no other council projects or developments. The municipality supports its joint venture development with a loan secured by the asset, although as the primary contractor, Robert Woodhead Ltd. doesn’t affect the financing arrangements.

Oak Fields is in the early phases of construction and several plots have been reserved, but the authorities promised interested parties that building would continue as planned once a new contractor was chosen. Bolsover leader Councillor Steve Fritchley and executive director of strategy and development Grant Galloway are company directors of Dragonfly Developments Ltd.

BDC lent the company money in August for ‘development purposes,’ but insists the money is still safe. The council quickly took over the Bolsover Homes project, using existing site managers and subcontractors to finish Woodhead’s work.

NEDDC and BDC wouldn’t reveal loan amounts. Robert Woodhead Ltd. constructed Chesterfield’s Northern Gateway Enterprise Centre and was to build ten residences at Middlecroft for CBC.

The authority hasn’t said how the news will affect the scheme financially. Robert Woodhead Ltd. employed 150 individuals and blamed growing costs for its bankruptcy.

The NEDDC representative said, “While contractors defaulting creates problems for our projects, it also affects workers and supply chain businesses.” We know businesses are struggling.