CONTRACTORS on the £2million project to re-develop Ramsey’s Grand Cinema have gone into administration.

Bourne-based builders FE Peacock, which were responsible for turning the building into a library learning centre, community information centre and 22 apartments and two houses, went into administration at 5pm on Tuesday, June 14.

Operations manager Paul Adams insisted the building was finished, but the building’s owners social housing landlord Luminus has not as yet taken control of the premises.

He said company bosses met with Luminus representatives the day before they went into administration for a site visit.

A source close to Luminus said the building’s keys were currently in the hands of administrators Baker Tilly. Hopes are they will be given to Luminus next week.

The opening date for the building was due to be July 6. Speculation is it will now be pushed back until mid-August.

Mr Adams said: “The building is complete. We are waiting for Luminus to take over the building.”

He added the residential development was also complete and residents were waiting for the green light to move in.

Mr Adams blamed Government funding cut-backs for social housing and the economic climate for the company’s demise.

A spokesman for Luminus said: “We have been disappointed to learn the news of the contractor’s difficulties. We are currently in discussion with the administrator.”

Cambridgeshire county councillor and Huntingdonshire district councillor Peter Reeve said: “We are making sure that all the various parties are working together to ensure the library does open and that all the facilities within are ready for the local public.

“We need to ensure the older library remains open until the new one is ready. We are working very hard with Luminus to make sure we do get the library that Ramsey deserves.”

Groups who were booked to use the library over the summer can contact Ramsey mayor Lisa Duffy to see if the town council’s facilities available. Call 01487 814957.