Magna firms call in the administrators

Mr Hodgkinson is a director of Magna Holdings and Magna (Yorkshire) Investments, which operate three multi-let offices in Yorkshire.

Yesterday, it was revealed that Lyn Vardy and Toby Underwood of PricewaterhouseCoopers have been appointed as joint administrators of both companies.

Ms Vardy said: “The directors have been working with the secured creditor over a number of months to resolve the companies’ financial difficulties.

“However they have been unable to secure alternative funding to the levels required.

“Consequently, the directors have appointed administrators to protect the companies’ assets as buyers are sought and have agreed to work with the administrators to maximise the returns available to creditors.

“We are hopeful of finding a solution to preserve jobs.”

According to a spokesman for PwC, Wakefield-based Magna Holdings had two staff, while Magna Yorkshire Investments had five staff.

Five employees have been retained by the administrators to help them with their duties.

According to its website, Magna Holdings has been developing property since 1978, and its forte is finding sustainable uses for “difficult developments”.

Businessman Mr Hodgkinson was chairman of regional development agency Yorkshire Forward from 2003 to 2010. Yorkshire Forward was scrapped last year as part of the coalition Government’s austerity measures.

Since leaving Yorkshire Forward, Mr Hodgkinson has launched his new business which is called ‘Inspiration for Industry, Education and Regenera- tion’.

He has also established The Alchemists’ Foundation, a community interest company, which aims to create a platform for young people to acquire new skills and tools.

He is also a Visiting Professor attached to the Business School at Leeds Metropolitan University, and was honoured in the 2010 Queen’s Birthday honours list with a CBE for services to business and regeneration.

Earlier this year, it was revealed that Mr Hodgkinson was behind plans to give a historic building in Yorkshire a new lease of life, creating 50 jobs.

Mr Hodgkinson and his wife Anne, have submitted planning and listed building consent to develop the 166-year-old Engine Shed in the centre of Whitby into a £500,000 visitor attract- ion.

An art, sculpture and exhibition space is planned, along with an 80-cover restaurant and café within the building.

In January, Mr Hodgkinson said that the facility will be “one of the largest private galleries in North Yorkshire” and will bring with it an extra 50 full-time and part-time jobs to the town.

The couple bought the property from building contractor David Harrison Group.