A Scottish housebuilder has collapsed owing more than £4.5million, leaving behind unfinished homes and creditors facing significant losses.
Kilmarnock‑based Hood Property Cardrona Limited entered administration last year while building a 20‑home development at Cardrona, near Peebles in the Scottish Borders.
Joint administrators James Stephen and Kerry Bailey of BDO were appointed to oversee the insolvency.
Their latest report warns of a “significant shortfall” for creditors.
Several properties had already been sold before the company entered administration, but administrators said substantial further investment will be required to complete the homes and finish the development.
The site has now been placed on the market, with a sale expected in the coming weeks.
When BDO was appointed, staff found the development completely deserted. Administrators said they were forced to gain entry to carry out an initial inspection and secure the site.
“Nobody was present at the site,” the report stated, adding that staff had to forcibly enter to assess the condition of the unfinished homes and install new security measures.
Hood Property Cardrona Limited collapses owing more than £4.5million as Scottish housing site goes up for sale
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GETTYThe sale process has been delayed while administrators sought court approval, increasing legal and property‑related costs.
The report shows Hood Property Cardrona Limited had an intercreditor agreement involving Crowd Property, Duart Investment and Castle Fox.
Of the three secured lenders, only Crowd Property is expected to recover any money — around £1.1million from the site sale.
The amounts owed to Duart Investment and Castle Fox are unknown, and administrators do not expect either to receive a return.
Administrators said it is unlikely any unsecured creditors will receive repayment
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PAHM Revenue and Customs has submitted a preferential claim of £4,684, while the company owes around £300,000 to unsecured creditors.
BDO has extended the administration until September to allow time for the sale to complete and remaining matters to be resolved.
The collapse has left the future of the Cardrona development uncertain, with buyers who had already agreed to purchase homes now waiting to see whether construction will resume under new ownership.