British architect is bought back as it goes into administrative receivership, two years after it was sold to US firm
A team of executives at the UK arm of architect HLM Design International has taken over the British subsidiary in a management buyout after it went into administrative receivership last week.

This comes two years after the directors at HLM Design sold the UK firm to American practice HLM Design International, which had the same name but was a separate company.

The two HLM companies formally merged in February 2002 as part of a global expansion strategy. The combined practice employed 500 staff in 14 offices on both sides of the Atlantic.

Chairman Chris Liddle, who led the buyout, would not be drawn on how much had been paid to gain control and save it from receivership.

He also refused to discuss the causes of the collapse of the UK subsidiary, though he did suggest "cultural management issues" were partly to blame.

He said: "Although the understanding was very good at the top, further down the line we experienced difficulties in coming together, with different approaches to financial management."

Liddle said that he had been completely behind the merger in 2002, but had since spent too much time pitching for work in the US and neglecting the British market.

He said: "The key thing is that the main UK directors are now in control of the UK operation.

"The lesson is that people in the UK have to spend more time on UK business."

Hinting at a shift of emphasis Liddle suggested HLM would be scaling down its involvement in PFI bids in favour of a greater range of schemes.

We experienced difficulties in coming together, with different approaches to financial management

Chris Liddle, HLM chairman

He said: "The concentration on the PFI marketplace brought about too narrow a focus. We will be looking at securing a greater number of projects with lower values."

Last October, HLM was part of the Bouygues consortium that lost out to Skanska on a £620m contract for St Bartholomew's hospital in London.

The buyout is the latest twist in the firm's changing fortunes.

In 1992 it nearly went into receivership, and in 2001 it cut jobs after a failed stock market launch (see "HLM's history", below).

The company will now trade as HLM Architects from its offices in London, Sheffield, Glasgow and Guildford, Surrey.

There have been no redundancies among the 120 staff.

Accountant KPMG is the administrative receiver for HLM Design International.

HLM’s history: A rollercoaster ride

1992 UK architect HLM Design hit by debts of £1.3m

1992-96 Practices uses company voluntary arrangements to pay back debts, and slashes salaries for board and staff; Liddle sells house

2000 Liddle fails in his attempted to launch HLM on the stock market when a bid to take over listed advertising group Osprey foundered

October 2001 HLM cuts 10% of its workforce, reducing staff from 150 to 135 following the first round of its PFI work

February 2002 US firm HLM Design International acquires Liddle’s HLM Design, to create a 500-strong, 14-office firm with a joint fee income of more than £50m

March 2004 Liddle and the other UK directors buy out the UK arm of HLM Design International after it goes into receivership