Pritchard in property sale to pay off debts

A raft of property is being sold off by administrators in a bid to pay off the Hednesford-based Pritchard Group's £100 million debts, it was announced today.

The group went into administration in April when the founder and chairman Fred Pritchard retired at the age of 69.

He had played a key role in the regeneration of Cannock Chase for more than a third of a century. However, the 35-year-old empire, which employs 85 people, is continuing to operate with chief executive Charles Tippet at the helm.

The group owed Lone Star more than £100m when it first went into administration.

In a bid to pay off those debts, administrators said they had begun selling off properties in its portfolio.

Industrial, office, commercial and residential premises are all included.

Only part of the group has gone into administration. A further 16 companies continue to trade including its main arm and property side.

KPMG spokeswoman Zoe Shepherd said it was not yet clear how long the process would take to complete.

Current chief executive Mr Tippet said the group would continue to look at developments, while the sell-off brought in funds to tackle existing debts.

He said: "We have had a range of properties go to auction, from one-bed flats to industrial estates.

"It is a change because the Pritchard Group never traditionally sold sites but this is helping to generate funds. We have potential new development sites but we need to rationalise to be able to bring them forward."

Included in the group's portfolio is the 12-storey Ramada Hotel in Bridgetown, which can be seen from the M6 Toll.

Mr Tippet added: "We will continue to sign up new tenants and our hotel is in fact doing very well." David Crawshaw, Rob Croxen and Richard Philpott of the accountancy firm were appointed on April 24 to Pritchard Group, Pritchard Construction Ltd, Pritchard Estates (Cannock) Ltd, Pritchard and Associates Ltd, and Pritchard Hotels Ltd, part of the borrowing group.