Council hopeful of saving luxury developments

REGENERATION chiefs are hopeful that major property developments in Oldham can continue despite administrators being called in to Hillstone Developments Ltd.

Potential administrators PKF are today continuing the process of putting the Oldham firm into administration after telling shocked staff on Tuesday they had lost their jobs.

Hillstone is building many of Oldham’s luxury flats and there are fears that the firm’s financial problems will damage the transformation of Oldham town centre.

But Oldham Council cabinet member for regeneration, Councillor Mohib Uddin, said he believed the developments could continue to progress — but acknowledged there could be a damaging knock-on effect to other businesses and jobs in the borough.

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

Councillor Uddin said: “I’m meeting with the management of Hillstone today and will be asking for a full position of where we are at. It’s in the council’s interests to try to help in any way we can. I will try to get first hand knowledge of what has actually happened.

“It’s sad news that Hillstone has had to go under in the current climate. Hillstone is such a major player and it’s a major industry that affects the whole of Oldham. The danger was we would be left with five key sites in Oldham that would be left undeveloped.

“But it might not be as bad as we first thought. Hillstone has five developments in and around the town centre, which are key sites to redevelop Oldham, but they are all separate companies.

“It will have a knock-on effect. They employ lots of people at Salmon Fields and in and around Oldham. It’s not just Hillstone but other contractors further down the chain. It’s a sign of the times but we need to take a step back and try and find some solutions.

“The current credit crunch is affecting numerous businesses. Our role now is to keep an eye on any other potential problems that might affect Oldham businesses.”

It’s been a rapid rise and fall for the company that reached a £75million turnover in December within four years of starting but was hit hard by the credit crunch.

The firm was employing 30 staff in Royton and was responsible for the employment of more than 300 people but it’s not yet clear how many have lost their jobs.

Hillstone directors Craig Halliwell and Tony Bhatti have not been seen at the company’s headquarters for a week and have had no contact with their workers.

Its major developments include 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.