Modus Ventures has been placed into administration in what KPMG has described as “one of the first in a long line of commercial real estate casualties”.
KPMG’s UK head of restructuring Richard Fleming said the Manchester-based developer had been in talks with “a number of parties” regarding funding for its ongoing developments and its administrators would “work with company management to pursue this interest”.
Mr Fleming, Brian Green and Paul Dumbell from KPMG Restructuring have been appointed joint administrators for Modus Ventures, which owns more than 40 companies across the UK – the majority of which are in the retail property development sector.
KPMG said that aside from subsidiaries Trinity Walk Wakefield, Modus Properties (Wigan) and Modus (Wigan) – which have all already been placed in administration – no other businesses linked to the group have been affected by the Modus Ventures administration.
Mr Fleming said: “The group, like many companies within the property sector, has not been immune to the economic downturn and, indeed, we believe will be one of the first in a long line of commercial real estate casualties.
“It is a large and complex group, with many lending institutions providing funds for both completed and part-completed developments. The company has been in discussions with a number of parties in respect of providing funding for ongoing developments and we will work with company management to pursue this interest.
“We continue to gather information on the group and will provide an update as to our strategy in due course.“