STOCKPORT-based construction, refurbishment and fit-out firm Multibuild Group has warned of redundancies as it looks to place one of its operating businesses into a company voluntary arrangement.

It says Multibuild Ltd has been suffering from a combination of the `recent economic conditions and a number of bad debts'.

In a statement, the Hazel Grove group said: "The directors of the business have chosen the CVA process as their preferred way forward, as it is expected that the longer-term cash flow of the business will allow it to provide the best financial returns for affected creditors.

"A small number of unavoidable redundancies will be necessary as a result of this arrangement.

"However, the vast majority of employees will continue to work within the Multibuild group of companies, which will remain unaffected by this move and will continue to trade as normal."

It is understood that packs proposing a percentage return of money owed to creditors of the company were sent out last week.