Flintshire-based David McLean went into administration recently after suffering the effects of the economic downturn.

The company's loss-making contracting division was closed, resulting in 134 employees being made redundant.

Administrators Deloitte today (Thursday) announced the completion of the sale of David McLean Homes Limited, the surviving house-building business, to Elan Homes Limited.

The move has safeguarded around 90 of the division's 155 employees against the threat of redundancy.

Elan Homes is a new company formed by the senior management team of David McLean Homes, led by ex-group finance director John Kendrick and backed by Barclays Bank.

The new company said it is "positive about the future" and that further details of its plans will be given in due course, with an official launch planned for January 2009.

It added in a statement: "The housing industry is still facing some tough conditions, however, with the combined steps taken by the Bank of England and the government we are confident this will result in a return of some sensible levels of mortgage lending and increased consumer confidence over time."

Joint administrator Nick Edwards said: "We are delighted to have been able to secure a going concern sale of the house-building business to Elan Homes.

"This sale will preserve a significant number of jobs, and also represents best value for the creditors of the David McLean group.

"Elan Homes has a strong management team, a strong financial base, and we are confident that they will be able to take the business forward on a stable footing.

"We are very grateful to all the staff of the David McLean group for their support during the administration process, and we wish them and Elan Homes every success for the future."

The administrators were appointed on October 27, and continued to trade the business while a buyer was found.

Of the 134 who lost their jobs with the closure of the contracting division, about 30 were based at the headquarters on Deeside Industrial Estate, which now employs about 100 people.