Home builder faces administration

Bentley Homes has suspended all its building projects

A West Midlands house builder is facing administration after being hit by the downturn in the housing market.

Wolverhampton-based Bentley Homes said cash flow problems caused by the economic downturn had caused it to seek help.

The company said that all of its existing building projects would be suspended.

Birmingham-based accountants Baker Tilly have been called in to act as insolvency practitioners.

Bentley Homes was set up five years ago by brothers Ajmal and Akmal Ellahi.

'No choice'

The company employed more than 20 staff but only five remain.

Apartment development Castle Locks, in Oldbury, is the only project yet to be completed, company director Ajmal Ellahi said.

In a statement, the firm said it suspended development in March.

It added: "The directors have spent months taking professional advice from the company's lawyers and have been negotiating with their funders to restructure the business to enable the company to complete all the development projects.

"Unfortunately, a rescue package was not forthcoming and based on the advice received this left the directors no choice but to file a notice to appoint an insolvency practitioner."

A spokesman for Baker Tilly said appointing an insolvancy practitioner was the first step in a process which could result in administration.

The spokesman added it would look at restructuring the business first.