Hillstone crash: five sites for sale?

FIVE Oldham property sites could be sold off now that Hillstone Developments has gone into administration.

And it may be back to the drawing board for projects, such as the Gaumont/Riley’s building, which was to be turned into 15 floors of flats, offices and shops.

Regeneration bosses held talks with Hillstone management as Manchester-based accountant PKF was confirmed as the administrator.

Every Hillstone development has been set up as a stand-alone company and can still continue, but Oldham Council has raised the prospect of each being sold.

The developments include The Victory, Union Street; Cardinal Court, Scholes Street; and The Bank, the former NatWest Bank and Northern Carpets shop at Mumps.

Cabinet member for regeneration, Councillor Mohib Uddin, said the council had no prior warning of Hillstone’s demise.

He said: “The credit crunch has without doubt had a ripple effect on the building industry and our first priority is to assist the employees who have lost their jobs.

“Our understanding from discussions with Hillstone is that all five sites are stand-alone businesses which can be sold off to other developers.

“Once the administrator has established the way forward we will be in a better position to gauge what we can do.

“We have also met Millerbrook Properties which is involved with the old Riley’s site in King Street. It will be seeking advice from us in terms of changing the use of the development.”

Staff were told on Tuesday they had lost their jobs and nearly a month’s pay. Hillstone employed 30 people in Royton but was responsible for more than 300.

Directors Craig Halliwell and Tony Bhatti have not been seen at the firm’s headquarters for a week.

PKF corporate recovery partner Kerry Bailey said: “Many people will associate the name of Hillstone with prestigious developments.

“However, PKF can confirm that the company that has been placed into administration is only the construction/sub-contracting element of the group, Hillstone Developments.

“The projects being undertaken are owned by associated companies which are not subject to an insolvency procedure and remain under the control of the companies’ directors.

“It has been confirmed that all head-office staff were made redundant before PKF’s appointment.

“We have already written to all affected employees, enclosing a redundancy application payment form. We will be available to answer any queries or concerns they may have, or to assist them in completing the forms.”

Staff are advised to get help from H20 Highway to Opportunities, on 0161-621 9200; the redundancy payments officer in Manchester for inquiries about unpaid wages on 0161-934 5400 or Jobcentre Plus claims hotline, 0800-055 6688.