New bosses appointed to oversee closure of local authority housing developer that helped bankruptcy

New bosses have been brought in to oversee the closure of the developer owned by Croydon council – which contributed to its bankruptcy 14 months ago.

Brick by Brick, which was set up by the authority in 2016, is expected to be wound down in 2023.

The closure comes as the council continues to struggle financially.

Croydon council loaned the company £200 million which auditors said contributed to the council then being forced to declare bankruptcy in November 2020.

A newly-appointed executive chair and non-executive director have been brought on board to take charge in the company’s final year.

Former naval officer Andrew Percival will be executive chair. He currently heads the Hemel Place Board and previously been a director of construction and real estate companies.

Chair of the Royal Borough Windsor and Maidenhead property company, Griff Marshalsay, will join the board as a non-executive director.

The pair will join existing directors Duncan Whitfield and Ian O’Donnell.

A statement from the developer reads: “In July 2021, in the context of significant wider financial challenges and pressures, Croydon council opted to cease funding any additional Brick By Brick schemes and wind the company down once any sites under active construction were completed.

“This is anticipated to be in summer 2023.

“The new board members will work with the council to close out the company’s existing developments, utilising their vast client-side development experience to achieve the delivery of high-quality homes for residents in the borough.”

The appointments come four months after the departure of Colm Lacey who was Brick by Brick’s chief executive since it was founded.

At the time, a spokesperson for Croydon council said: “We have been clear that Brick by Brick needed to take a new direction and we welcome the decisions taken by the new directors to restructure and re-focus the company’s work.

“It is right that this new direction comes with new leadership as Brick by Brick seek to deliver over 700 new homes and wind up the company.”