A former football president has told how he was “devastated” after the corporate structure he built from scratch went bankrupt.
The Stewart Milne Group, one of the country’s largest house building companies, plunged into administration with the immediate loss of 217 jobs.
But it is estimated that the company employs more than 1,000 people, subcontracted.
These groups are now grappling with the uncertainty, along with clients who have shelled out thousands of dollars for home construction.
Tycoon Stewart Milne, 73, revealed that the bank closed after his business went public.
He said: “I’m devastated by this totally unforeseen end result of the sales process.
“I’m struggling to accept it, given the profound impact it will have on employees, sub-contractors, suppliers and customers.”
It is understood that the billionaire submitted one of the two payment offers to buy the company, but it was rejected.
He revealed: “Stewart Milne Group was up for sale and, following significant interest, two bids were submitted.
“The bank was not satisfied with any of the offers and withdrew its financing, leaving the administrators with no option yet to appoint administrators.
“I’ve tried everything to find a way to make a bigger impact for the company and the other people who depend on it.
“I believe that one of the offers could have brought a comparable financial return to management and, more importantly, allowed the company to continue operating, safeguarding many jobs and protecting livelihoods. “
Mr Milne was chairman at Aberdeen FC for 21 years before he retired in 2019. He remains on the board.
Administrators revealed 112 employees will be kept on at the Stewart Milne Group for the moment. Mr Milne founded it almost half a century ago in 1975.
At the time, it had only 30 employees and a turnover of £1 million in the first year.
It was hit by Covid and in April reported pre-tax losses of £71. 5m for 2020.
It posted a loss of £13. 1 million the following year before reporting £16. 5 million in 2022.
In April of the same year, he announced that Mr. Milne was promoting his business because he was looking to retire.
He said he wanted to spend more time with his family and would split his time between homes in Aberdeen, Perthshire, Turkey and Florida.
We tell the story of how his luxury mansion was put up for sale 18 months ago and is still looking for a buyer.
While his company has projects at various stages across Scotland including sites in Aberdeen, Stonehaven, Arbroath and Dundee.
But now administrators Teneo have been called in.
The firm’s Adele MacLeod blamed the downturn in the housing market combined with the failure to find a buyer for the business.
She said: “Ultimately, this led to directors declaring Stewart Milne Group Limited and some of its subsidiaries into management, with some swift redundancies.
“We continue to evaluate all features related to the group’s Scottish progression sites and inspire any interested parties to contact us. “
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