ERINACEOUS GROUP entered administration yesterday, weighed down by debts of more than £250 million, bringing an end to a cor-porate tale of rapid expansion and equally rapid decline.

KPMG's Jim Tucker and Myles Halley were appointed as joint administrators.

The shares were frozen yesterday at 1.65p, valuing the equity at £1.77 million.

In March 2006 the shares reached a peak of about 400p. Last summer a bid proposal from HBOS was discussed at 300p a share.

Shareholders are unlikely to receive much from the administration.

The administrators said Erinaceous' insurance subsidiary had been ringfenced and would be sold to a vehicle owned by the group's banks within days.

Two other divisions, the residential management business and property maintenance division, would remain outside any insolvency process and trade as normal.

Erinaceous' troubles became apparent in September when it delayed interim results after realising it had breached banking covenants. Its founders, Nigel Bellis and Lucy Cummings, later resigned as directors.

Erinaceous acquired Irish quantity surveyor Tom McNamara and Partners for €10 million back in 2006. - (Financial Times service)