Modus Ventures collapses into administration

Accountancy firm KPMG has been appointed to oversee the administration of the company, which owns more than 40 subsidiary companies in the UK, many of which own retail property.

Modus has already placed two of its shopping centres into administration this year after failing to secure continued funding for the schemes, one of, Trinity Walk in Wakefield, was in the development stage and is still on hold as a new buyer is sought by administrators.

KPMG has stressed that only Modus Ventures has been placed into administration, and not its subsidiaries, other than those schemes that have already gone under.

KPMG UK head of restructuring Richard 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.”