Hillstone jobs anger as administrators move in

AN administrator at the Salmon Fields HQ

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ADMINISTRATORS have been brought in to the firm building many of Oldham’s new luxury flats putting major property developments in peril.

Administrators PKF arrived at Hillstone Developments Ltd’s headquarters at Royton’s Salmon Fields Business Park yesterday to tell shocked staff they had lost their jobs.

Directors Craig Halliwell and Tony Bhatti have not been seen at the company for a week and have had no contact with their workers.

In December, the firm had a £75 million annual turnover, employed 30 staff in Royton and was responsible for the employment of more than 300 people.

But the credit crunch has hit hard and there had been talk of strife with angry contractors claiming not to have been paid.

Hillstone was at the forefront of four major developments in Oldham — six floors of apartments and retail units at The Victory, Union Street; 58 two-bed apartments at Cardinal Court, Scholes Street; 57 apartments at The Bank, the former NatWest Bank and Northern Carpets store in Mumps; and a 15-storey development at the old Gaumont Cinema building in King Street.

The company also sponsors Oldham Athletic and the businessmen took over Chadderton Football Club last year but withdrew their financial backing within months. They informed the Broadway club’s committee it was up for sale for £1.

Staff were not told that the firm was in trouble until Monday afternoon when administrators arrived. They returned yesterday to be told they had lost their jobs and would not be paid last month’s wages. Angry workers hit out at their treatment and questioned how the company could pay £40,000 in sponsorship to Latics last week but not pay its staff.

One employee said she had been assured recently by management that staff would be looked after.

She added: “I’m really annoyed. To do this is disgusting.”

Another said he had suffered harassment from contractors chasing missed payments, but his bosses had kept him in the dark. He added: “It’s scandalous. They knew we would work for them all month and not get paid.”

Manchester-based accountants PKF say they are the proposed administrators, but warned the company is not yet in administration, though the procedure is under way.

Every development Hillstone undertakes is a separate, stand-alone company and they are dealing only with Hillstone Developments Ltd — the administrative base.

The situation will also impact on the many sub-contractors in Oldham who are working for Hillstone Developments.