A PROPERTY developer has announced further job losses after two more of its construction firms were placed into administration.

Hurstwood Developments and Hurstwood Facilities Management, which are both owned by the Hurstwood Group, are being wound-up as the effects of the global credit crunch continue to hit the building trade.

The news is another body blow to the company and comes just three months after Hurstwood Construction — the company’s external construction arm — was put into the hands of administrators with the loss of 15 jobs.

Chairman Stephen Ashworth said: “The construction side of our group has been hit hard by the complete collapse of the property and housing markets.

“We have spent millions of pounds over the last 12 months trying to keep Hurstwood Developments alive but pressures outside our control and the knock-on effect of placing Hurstwood Construction into administration earlier this year, eventually took their toll.

“In taking these steps now we are trying to protect the long term future of the Group as a whole. It has not been an easy decision but it is not a problem that is confined to our business — it is a national and global one. It is one of the stark realities of the current economic climate.

“Restructuring is a very painful process and we have no choice but to close down all of our construction activity and by doing so, retreat to our core activity of property investment.”

Work on Rawtenstall’s New Hall Hey shopping centre has been temporarily suspended as the administration process gets under way.

Hurstwood Developments mainly handles the group’s own residential and commercial construction projects and the Bolton-based company said that anumber of redundancies were inevitable, although at this stage it was unclear how many jobs would be lost.

The company relocated to Bolton from its Rossendale base earlier this year.

Around 100 people are employed at the Bolton site and there are 20 separate subsidiaries operating under the Hurstwood Group banner.