The developers of Birmingham’s The Cube, the Birmingham Development Company and BuildAbility, have today been placed into administration after credit negotiations collapsed.
In a statement, the directors of the company said they were “bitterly disappointed” that they had been unable to secure funds to complete the mixed-use project.
Mark Batten, Matthew Hammond and Peter Spratt, of PricewaterhouseCoopers, were appointed joint administrators. They have indicated they do not intend to market the development in its current state.
Discussions will be held with principal stakeholders, however, with a view to completing the development.
Company directors said: “We are bitterly disappointed that we have been unable to reach agreement with Lloyds Bank to enable the development of The Cube to be funded to completion, particularly when the project is so close to completion.
“As a consequence, having taken legal advice, the directors considered they had no alternative other than to request that Lloyds Bank appoint administrators – which has now been done.
“It is a sad day for The Cube, an ambitious project for Birmingham, into which we have put five years of our lives, but like many development projects across the UK, it has succumbed to the pressures of the global economic downturn, which followed the credit crunch.”