THE demolition of two eyesore buildings in Basingstoke is to be delayed after the contractor went into administration.

Armoury Group, based in Birmingham, had been contracted to pull down two derelict 1970s office blocks - City Wall House and Loddon House - as part of the major scheme to rejuvenate the Basing View business area.

But the company went into administration on December 23, meaning that work to tear down the 10-storey blocks has not restarted after the Christmas break. However, borough chiefs who are behind the scheme, say they are confident the work will continue and may be completed within three months once a new contractor has been found.

Cllr James Lewin, Basingstoke and Deane Borough Council Cabinet Member for Finance, said: “The council remains totally committed to creating a 21st Century urban business park of regional importance as part of our transformation of Basingstoke town centre. The demolition company going into administration is unfortunate but we are in a strong position with half of the most difficult work already completed. Therefore, I remain confident that we should still be able to complete the contract within the earmarked growth point funding we received from central government and with only a few months’ delay.”

He said officers have been in discussions with the administrators and are working to get the project back on track as quickly as possible.

The demolition had been scheduled for completion by April this year, but could still be finished in the summer.

At the same time as starting the demolition, the council is also forging ahead with its search for a high profile development partner to help regenerate the town centre business park over the next 10 to 15 years. The plans for the Basing View area include a mixture of office space, hotels, leisure facilities and shops. Cllr Lewin said property companies had shown interest and the results of the search would be reported back to councillors in the early summer.

The council has earmarked more than £10m for the scheme, which includes six sites totalling 20 acres.