James Butcher to cut staff as it moves to join group structure

The Reading-based association, which manages 4200 homes, has taken the step in order to meet a £75m funding shortfall.

No decision has been made on the number of redundancies but consultation with its 260 staff is under way.

A review of its assets revealed that its stock needed £75m of investment over the next 30 years.

James Butcher has not yet entered into discussions with any potential group partners, but said it would shortly be approaching “seven or eight” associations to invite proposals. It will then draw up a shortlist of four associations before choosing a partner in July.

David Hucker, the interim chief executive of James Butcher, said he expected a number of associations to express interest.

He said: “We are looking to become an operating subsidiary within an existing group structure. James Butcher is attractive because we’re asset rich – our stock is in some of the highest-priced counties in England. We would enhance a partner’s balance sheet.”

The association was placed under Housing Corporation supervision last May because of concerns about its management.