A HOUSEBUILDER with "unfinished" projects has entered liquidation - a day after another construction company made more than 200 staff redundant.
Merchant Homes, which has an “unfinished” estate in Glasgow and permission to build flats on land owned by Rangers Football Club has appointed liquidators for the business.
The firm specialised in private and social housing but said a number of factors led to the decision to cease trading.
Liquidators, Opus Restructuring & Insolvency, confirmed Merchant Homes had ceased trading and 22 employees were made redundant.
The announcement follows the news yesterday that major housing developer Stewart Milne Group had gone into administration.
Merchant Homes had permission from Glasgow City Council to build 160 flats on the Albion car park, adjacent to Ibrox Stadium.
The plan was for social rented homes two U-shaped four-storey blocks in red brick to complement the Ibrox main stand.
It had also completed homes in Easterhouse but residents have complained that other external work had not been delivered.
Residents have reported a playpark and landscaped areas remain unfinished.
Provisional liquidators were appointed last month.
The liquidators cited increasing costs, inflationary pressures, unforeseen delays to new contacts and a general downturn in buyer confidence across the sector resulting from the rise in interest rates as reasons for the company going out of business.
The firm had contracts worth around £20m across Scotland including east Kilbride and permission for flats in Glasgow.
Mark Harper and Steven John Parker, from Opus Restructuring & Insolvency have been appointed joint liquidators.
Harper said: “For some time, the construction industry has been experiencing extreme challenges.
“The rate of failure in the sector is at its highest in over a decade, rising material costs, inflation, planning delays, and skills shortages have all contributed to the distress.”
As well as private housing, Merchant Homes had a partnership with Sanctuary Housing to build social rented homes.
