Housing developments under construction in Cornwall are set to go ahead despite the developer being ordered to wind up the company.

The Stephens and Stephens Group say schemes including One Pentire as well as the Cliff Edge 1 and 2 in Newquay will continue after the company was taken to the High Court of Justice in London by Travis Perkins Trading Company over unpaid debts.

Founder Paul Stephens said the compulsory liquidation of Stephens & Stephens Developers Ltd, has forced the company to restructure to launch "a proactive restructuring process, ensuring a robust and positive future for its 141-strong workforce, from headquarters staff to contractors.”

Stephens and Stephens is currently building six developments in Cornwall, which also includes Southshore in Seaton, High Tide in Newlyn and The Nest in Charlestown.

Councillor Joanna Kenny, the chairman of Newquay Town Council’s planning committee, said: “Real concern on Pentire at the future of One Pentire, the rebuild of the Fistral Bay Hotel, following the publication of the problems with the developers Stephens & Stephens.

“While the exterior looks nearing completion, there must still be much to do on the interior. 

“And then there is Cliff Edge 2 development, formerly the Cliffdene and Marina hotels on Narrowcliff, right next door to the Hotel Bristol.”

A spokesperson for Stephens and Stephens Group, said: “We have proactively closed a division of its company structure, following action from national supplier Travis Perkins.  

“Last month, Stephens and Stephens Group completed a proactive restructuring process, ensuring a robust and positive future for its 141-strong workforce, from headquarters staff to contractors.  

“This also means that an unfortunate wind-up notice as a result of action from Travis Perkins does not affect the Cornish company’s success going forward.

“This strategic move enhances efficiency and focuses the company’s efforts on its six current live sites and numerous future developments. 

Founder Paul Stephens added: “As everyone who is either working in, or investing in, the UK development and construction sector knows, the past few years have altered our industry workings in unrecognisable ways.  

“As a company, and as a team, we are very proud that Stephens and Stephens Group bucked the COVID trend by not just growing, but by blossoming, through the pandemic.  

“Yet, despite this, we like everyone else, have faced undeniable challenges as every single cost sky-rockets, and as suppliers and sub-contractors continually change operational terms, conditions and processes in so many unthinkable, and deeply-affecting ways.

 “Rather than be defeated by these issues, as a Board, we have reworked our company, safeguarding each development on individual basis, in turn ensuring we safeguard our customers and our investors at all times.  

“This route also means we can provide safety to our direct sub-contractor base along with our key trade sponsors and suppliers.”