The project manager for a £1 million housing scheme in Shropshire being developed by Frank Galliers Ltd today said he had been told the company had gone into administration.

Colin Silk, of Silk, Plant and Associates, is urgently trying to contact bosses at the construction firm after work stopped on his Broseley development.

Mr Silk said he was contacted by Frank Galliers, which was working on the former Shirlett Sanatorium, on Tuesday morning and was told the firm had entered administration.

He said work to convert the site into apartments had now stopped, just four weeks from completion.

Mr Silk said: “We are restoring a dilapidated hospital into 11 apartments and I was called on Tuesday morning by Paul Braddock, the contracts manager with Galliers, who told me they had gone into administration and they wouldn’t be coming back.”

Tom Green, of Michael Hyde and Associates, the architects working with Galliers on the £7 million Oswald Park leisure centre development in Oswestry, said: “We became aware that they had gone into receivership or administration on Tuesday.”

And site manager for Galliers, Andy Florian, said he had received a call on Monday night telling him not to come to work on Tuesday.

Mr Florian, who has worked for the firm for nearly 30 years, said: “I went to the JobCentre yesterday but until I get a letter from the receivers I don’t know what to do.

“There’s lots of rumours flying round that someone will buy them out, but it’s a waiting game until someone makes a decision.”

The Shrewsbury offices of the firm remained closed today. None of the company’s directors has been available for comment.

Officials at Shropshire Council and Shropshire County PCT say they still have not heard from the company despite Galliers work halting on projects.

Roland Taylor, a London-based solicitor who has acted for directors Kevin Connolly and George Buter as well as Frank Galliers Limited, and Stephen Fuller of Harris Cartier law firm, which represents Frank Galliers’s parent company Pan Atlanta Developments, today both refused to comment.

By Andy Morris and Russell Roberts