Administrators appointed to SPV behind £24m Bolton redevelopment
Thu, 18 Apr 2024 | ADMINISTRATION
A special purpose vehicle (SPV) behind a £24 million redevelopment project in Bolton has fallen into administration. Featherfoot Globe Limited entered administration on April 10, with RSM Restructuring Advisory’s Lee Lockwood and Gareth Harris appointed as joint administrators.
The SPV was established to bring forward the old Globe Works site redevelopment on the outskirts of Bolton. The project aimed to transform the disused commercial building into 150 modern residential units.
Featherfoot Globe’s sole director is Paul Rothwell, Managing Director of Empire Development Holdings. Another Rothwell company, MCIOD (previously Empire Property Concepts) fell into administration last year.
Globe Works, a 19th century textile mill, was being marketed to potential investors last year by Solomon Investment Partners, which subsequently ceased trading, saying that it had experienced “continuing issues with the developer Empire Property Holdings and their associated companies”.
Solomon Investment Partners added at the time: “Unfortunately, Empire have failed to deliver on its commitments, and this has had a direct impact on investors as well as on Solomon Investment Partners which has not received the payments it was due.”
Following the collapse of Featherfoot Globe, joint administrator and RSM UK partner Lee Lockwood said: "While we are still in the early stages, initial information indicates the company may have become insolvent due to a range of factors including (but not limited to) difficulties sourcing labour in the current tight labour market, increased material costs caused by macro-economic factors, increased interest rates, and issues in completing unit sales, due to reduced appetite from buyers."
RSM is now exploring options available to Featherfoot Globe Limited, but it is reportedly too early to state what will happen to Globe Works following the company’s collapse. The company did not directly employ any staff, meaning that there have been no redundancies as a result of its administration.
In Featherfoot Globe’s accounts for the period from September 23 2021 to December 30 2022, its current assets were valued at just under £19 million, but the company’s debts left it with net liabilities of £1,432.
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