Morning:
14°c
Architect to the stars takes protection from his creditors after losing four worldwide projects
Jonathan Prynn, Consumer Business Editor24.07.09
David Adjaye said his firm was in a 'good place'
A society architect whose clients and collaborators include Ewan McGregor, Alexander McQueen and Brad Pitt, has been forced to seek protection from his creditors after his firm ran into financial difficulties.
Hoxton-based Adjaye Associates, founded by award-winning Ghanaian "starchitect" David Adjaye, owes more than £1million and faced insolvency after four major contracts were scrapped or delayed.
The difficulties come three months after Mr Adjaye, 43, beat some of the profession's biggest names to win the contract to design the £300million National Museum of African American History and Culture in Washington.
However, it emerged today that the son of a diplomat, who describes his firm as a "Robin Hood practice", has had to agree a Company Voluntary Arrangement with creditors despite using £500,000 of his own money.
Creditors covered by the arrangement include the taxman who is owed £150,000. The firm also owes NatWest £500,000 but this debt is not covered by the agreement. Industry experts said there was nothing stopping Mr Adjaye returning to the frontline of architecture once he had sorted his firm's finances. However, he is unlikely to be able to bid for any major projects under EU rules until then.
Lane Bednash, partner at insolvency experts Valentine & Co who brokered the CVA, said: "If they don't comply with the terms of the arrangement, we are empowered to begin winding up proceedings." The last set of accounts for the firm show it lost £59,000 last year.
Mr Bednash said the problems were caused by the loss of projects in Birmingham, Abu Dhabi, Kuala Lumpur and India.
Today Mr Adjaye, who has appeared on the guest list at Chequers, told Building Design magazine: "The CVA is a reality but it's nothing to be ashamed of. It was difficult last year due to the financial crisis but we're through it now. We have enough work on our books and we're repaying our CVA very well so we're in a good place."
Mr Adjaye's projects include the "Ideas Stores" in Poplar and Whitechapel, the Shoreditch art gallery Modern Art Inc and the jewellery room at Selfridges.
