KPMG has been appointed as administrator to seven companies within the UK arm of the McInerney Holdings.

The Wigan-based house-builder has offices in Durham, Leeds, Wolverhampton and Northampton and has a number of development sites around the North East, North West, Midlands and Yorkshire.

The appointment was made at the request of the company directors, and includes McInerney Group Limited; McInerney Homes Limited; Alexander Developments (North East) Limited; Lancing Homes Limited; Gold Homes (The Wave) Limited; William Hargreaves Limited and Bowey Homes Limited.

The seven firms employ 161 people, with 14 people within William Hargreaves made redundant following the administrators’ appointment.

The administrators of the firms said they would transfer a number of the group’s private development sites to Ludgate Hill Developments Limited, a solvent entity within the group, allowing the sites to be developed.

A deal has also been agreed in principle with former McInerney Homes management to buy its social housing business.

“The economic downturn, particularly in respect of the UK residential property market, has had a severe detrimental impact on the Group’s cash flow therefore limiting its ability to trade without substantial additional finance,” said Richard Heis, restructuring partner at KPMG and joint administrator.

“Our overriding objective is to ensure that work on the majority of the live private development sites is able to continue in order to maximise value in the interests of all the creditors.”