WORK on a retail and housing project - seen as a major boost to a rundown area of Kidderminster - has been dealt a blow after the contractors went bust.

Telford-based contractors, CJ Pearce & Co, laid off workers at the Comberton Terrace site on Comberton Hill after the firm went into receivership.

The 60-strong workforce has been made redundant and receivers, SFP, have been appointed as administrators by the company's financiers.

The news has come as a setback to Comberton, which is set to benefit from 13 apartments and five shops.

Councillor Fran Oborski, who has been looking into the situation, however, said she hoped work would restart in the near future.

She added: "Obviously, it is very sad to hear about the loss of jobs but the agent for the developer is confident that new builders will be on site very quickly."

The receivers confirmed the company had got into financial difficulties. Construction work on its sites has now stopped.

Simon Plant, managing partner of SFP, said: "The company had been experiencing increasing pressure in recent months, with a significant downturn over a short period. We have now begun the process of maximising the realisation of assets."