Two companies behind part of a £94m development in Manchester have fallen into administration.
The businesses are part of the wider DeTrafford group and were connected to its Gallery Gardens residential scheme.
The proposed development has planning permission for a 19-storey and 13-storey tower with 366 apartments in total.
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Business restructuring partners Kerry Bailey and Lee Causer at BDO have been appointed to oversee the administration of DeTrafford Gallery Gardens Block A Ltd and DeTrafford (Regiment) Limited.
No information has been provided on the future of DeTrafford Gallery Gardens Block B Ltd.
A spokesperson for the joint administrators said: "Due to well-publicised financial challenges, DeTrafford Gallery Gardens Block A Limited and DeTrafford (Regiment) Limited have entered an insolvency process.
"We are evaluating the company’s position and will take appropriate steps with a view to maximising returns for the benefit of creditors in accordance with our duties."
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The Gallery Gardens scheme had been earmarked for land at the corner of Hulme Hall Road, Chester Road and Ellesmere Street.
The development was designed by JM Architects and DEP and was approved by Manchester City Council in 2020.
No work has taken place on site since permission was granted.
The news come after another DeTrafford company entered administration recently. BDO was appointed to oversee the process at DeTrafford Sky Gardens which was behind the 13-storey development in Chester Road which includes 166 flats.
Fellow DeTrafford companies St George’s Gardens, City Gardens and Wavelength are also currently in administration.
The company behind St George’s Gardens, an 11-storey apartment building that includes 138 flats and was completed in 2020, owed almost £50m when it entered administration.
In October 2022, investors in the £99m Wavelength project to build more than 400 apartments in Salford Quays were warned they might not receive their full deposits back after the company behind the scheme entered administration.
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