The company appointed by Wokingham Borough Council to complete construction of 55 apartments at Carnival Hub has entered administration.
Osborne Construction was appointed less than six weeks ago after the previous firm responsible for the development entered liquidation.
News emerged late last week that it intended to enter administration, and that was duly done on Monday morning.
Osborne Group’s chairman Andrew Osborne said filing for administration was ‘the right thing to do’, while the company continues its search for external investment.
In a statement the company said: “The decision was reached after an 18-month programme to restructure the firm to focus on the core construction business, and following an extensive effort to secure new investment into the business.
“The company, with its advisors, is currently working with interested parties with the ambition that aspects of the business will be sold and will continue to trade.”
The mixture of one- and two-bedroom apartments looked set to welcome residents by early 2025, but the latest news may put that timeline in doubt.
The development sits opposite the Carnival Hub in Wellington Road, which opened in the summer of 2022 and is home to Wokingham Leisure Centre and Wokingham Library.
Wokingham Borough Council announced Osborne’s appointment on March 14 this year.
At that time, Cllr Stephen Conway, leader of the council and executive member for housing, said: “I am delighted to see Osborne have been appointed to take this project forward.
“This will deliver high-quality and energy-efficient accommodation in the town centre.”
Mid Group was originally handed the contract in March 2021, but its parent company ceased trading in July 2022.
A Wokingham Borough Council spokesperson said: “Wokingham Borough Council has been advised that Osborne Ltd, the main contractor at Carnival Place, has issued a notice of intent to appoint an administrator.
“It is premature for the council to comment further at this time.
“Given the risks inherent in all building contracts of this type, the council has rigorous policies in place to manage situations like this and will move to secure the site and complete the works should this be necessary.”
