A slowdown in the housing market and the declining popularity of city living were responsible for the collapse of Worcestershire homebuilder Neil Grinnall Homes, it has been claimed.
Receivers said they won't be forced into a knock down sale of its remaining properties as they attempt to clear its debts.
Moore Stephens, which was called in to oversee the company, would not be drawn on the level of debts accumulated by Grinnall before they were called in on October 31.
But the figure is thought to be substantially more than #5 million.
Mark Bowen, a partner at Moore Stephens and receiver of Grinnall Homes, said: "The housing market turned against the company.
"It had a number of developments completed, but was unable to sell some of them.
"This was nothing to do with the quality of the sites, with some of them winning awards. In the right market they are highly desirable properties.
"But people have not been buying them as quickly or as often as the company would have liked. There has been a general slowdown in city living, with one report saying there was not a single apartment sold in Birmingham last
month from all builders." At present around 40 properties built by Grinnall, which was headed by chairman Neil Grinnall, remain to be sold.
The company pioneered the concept of urban living in Worcestershire with its K1 and K2 sites in the city.
The developments, at the former Kay's Catalogue office building in The Tything area of the city included 24 apartments which sell for up to #250,000. Next door, the K2 scheme of new build apartments and town houses cost up to #315,000.
Mr Bowen said 13 properties at K1, 20 at K2 and seven at the Bath Road development in Worcester remain to be sold.
Estate agents Knight Frank were being kept on to oversee the sale, and there had been a great deal of interest, Mr Bowen said.
All 14 staff employed by Grinnall Homes were being retained to help finish off the properties, which included penthouses, townhouses and apartments, so they could be sold, he added. Mr Bowen was also overseeing the sale of the company's offices at Hadzor, in Droitwich.
He said: "There has been no interest in buying the firm as a going concern, but we have had considerable interest in the remaining properties."