By Pamela McGowan

Last updated 11:43, Friday, 08 August 2008

THE FATE of one of Silloth’s newest developments hangs in the balance after the building firm went bust, leaving the project unfinished.

Bill Jefferson: ’I really hope this is not the first sign of a massive recession’

Last month tradesmen, owed tens of thousands of pounds, went into the houses – on the site of the old railway station – and removed doors, windows and interior fittings.

Although they have been boarded up to an extent, there are now fears that the houses will never be completed after it emerged this week that the firm behind the scheme, James Morgan Developments, has now gone into administration.

One local councillor said the six new terraced houses were almost finished and ready to be sold – providing much needed housing for local families.

Bill Jefferson said it was depressing to see them fall to such a fate after years of effort to regenerate the Station Road site – which has long been regarded as a local eyesore.

He also fears that this may not be the last development in the area to feel the effects of the credit crunch, predicting that we may other firms going bust over the coming months.

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It is not yet known what will happen to the houses, which are boarded up and surrounded by fencing.

Contractors initially started removing items from the properties in early July after their invoices remained unpaid.

After failed attempts to contact bosses at James Morgan Developments they decided to take back anything of value until their bills were settled.

The police were initially called out after reports of looting, but as the materials still belonged to the contractors, no further action was taken.

Mr Jefferson it has been all quiet since then, though several people have been to look at the site.

Then, earlier this week, administrators, MCR Corporate Restructuring, announced that the firm, registered to an address in Newcastle, had gone bust as of July 30.

“We’ve waited a long time to get this building put right. Ever since the railway closed in 1964 it has been getting progressively worse.

But Mr Jefferson is trying to remain positive that somebody will buy the site soon and finish the houses ready for sale.

He said it was sad that the local firms who worked on the houses will probably never see the money they are owed. And he fears there may be more bad news to come for future developments.

“It is a worry. I really hope this is not the first sign of a massive recession,” he said.

“There are certainly signs around that this may be the first, but not the last.

“You get the feeling that this could happen anywhere right now.”

PMcGowan@cngroup.co.uk