THE chief contractor behind the building of the Forest's first and most prestigious Forest log cabin resort – opened just two months ago with guests including designer Laurence Llewelyn Bowen – has gone bust.

Quibell and Son (Hull) Limited was the main contractor for the joint £12m Forest Holidays and Forestry Commission venture which saw the building of 76 log cabins, some with hot tubs, luxury bathrooms and complimentary Wii consoles at Bracelands near Christchurch.

It is understood the Hull-based company, which was due to start on a cabin resort in the New Forest, still owes money to a number of Forest companies, likely to be plumbers, electricians, landscapers and sawmills, among others, although this is denied by the Forestry Commission (see comment).

A letter to 'all known creditors' from the administrators, PricewaterhouseCoopers, says they were appointed on November 23, 2010 and asks for any details of outstanding orders or any properties held in hire or rental.

The two Hull-based building firms going into administration (including Humber Joiners) were chief contractors for all the Forest Holiday resorts, including Bracelands and, so far, have a impeccable record.

According to 'Construction Enquirer' they have a history tracing back nearly 135 years and built Hull's Guildhall. The company has also been a main contractor for hospital and school projects. In total 90 jobs have been axed.

Mark Loftus of PricewaterhouseCoopers (quot­­ed by Construction Enquirer) said that both companies had been making losses for a several years.

He said: "Trading has suffered in recent years and the administration is clearly disappointing news for the stakeholders and employees in particular."

It is understood both firms have been hit by Government spending cutbacks and the delay of a significant contract which hit cashflows.

Four months ago Quibell Construction Group announced it was shutting down its stonemasonry and restoration division resulting in the loss of 15 jobs.

When the Review reported in advance on the opening of the cabin resort, Chris Brooks, Head of cabin operations for Forest Holidays was confident.

"We're really hopeful that the new cabins will do a lot to boost the local economy. Already about 80 per cent of the building contractors we're working with are local."

Mr Kevin Stannard, deputy surveyor for the Forestry Commission in the Dean said: "We are surprised and saddened by this news. At this stage we will be working closely with our partners, Forest Holidays, to

investigate the situation."

He added: "Forest Holidays have confirmed that Quibell and Son went into receivership after the Forest of Dean cabins development was completed. Forest Holidays have further confirmed that all accounts between Forest Holidays and Quibell were settled prior to the company going into receivership. Forest Holidays are unable to comment on matters that are being handled by the receiver."