The nationwide housing crisis has hit a multi-million pound south Shropshire retirement complex and led the developer to publicly scotch rumours that his company has gone bankrupt.
The rumours flying around Craven Arms this week were that George Bowness, director of New Dawn Care Ltd, had run out of cash at the Roman Downs Care Village.
The project, launched with much publicity some four years ago, involves retirement apartments and bungalows focussed on a Care Centre, Oak Lodge, with secure accommodation a 62-seater restaurant, cinema and medical facilities.
The Lodge offers “five-star accommodation” according to the New Dawn Care website.
Currently there are seven out of 10 apartments unsold and six of the 15 detached bungalows left.
“Work on the Care Centre stopped recently and the site was locked up while the unoccupied flats and bungalows were not even visited,” a town resident, who did not wish to be named, told the Journal. “Everybody feared the worst.”
However Mr Bowness said: “We had expected to sell all the properties before starting the care centre but at present the housing market is very unpredictable and we did not sell within the timescale originally budgeted for.”
He added that the drains, steel structure and slab at the Centre were now completed at a cost of £500,000.
“We agreed with Harpers, our builders, to draw a line under the costings up to and including the slab and steelwork and to re-negotiate a price for building out the care centre.
“I’m sending a letter to all my residents in Roman Downs. I can assure you we are not bankrupt or in any financial difficulties and I intend to build the care centre.”
Mr Bowness’ letter said: “Unlike many small companies we have significant assets which far outstrip our debts.
“It is our intention to build the care centre and provide you with the services we have always promoted.
“I trust this brief explanation not only brings you up to date but also removes the many rumours circulating Craven Arms,” the letter ends.