Erinaceous divides as it enters administration
Residential management and maintenance company the Erinaceous Group has gone into administration after running up debts of more than £250 million.
It ceased trading on the stock exchange on Monday as the business was handed to administrator KPMG.
In a statement the Erinaceous board said that given the extent of the challenges facing the group 'it had not been possible for the group to reach an agreement with its lenders and other creditors'.
Its successful insurance arm, which includes social housing insurance broker Farr Insurance, is to be sold through a special purpose vehicle set up through its banks.
A buyer has already been found but is subject to approval by the Financial Services Authority.
Its residential property maintenance and management arm, through which it does a wide range of work for local authorities and housing associations, will also continue to operate.
A statement from administrators KPMG said: 'The strongly performing insurance subsidiary, Erinaceous Insurance Services, is ring fenced from the rest of the group, and continues to operate as normal.'
Chartered surveying firm Eddisons has purchased Erinaceous' property management and maintenance teams, along with its landlord and tenant teams.
These teams will continue to operate from their existing premises and with existing staff.