Tate Tower firm in cash crisis

The developer of the controversial tower proposed for a site next to Tate Modern is facing bankruptcy.

London Town lost £10.3 million last year and is trying to sell millions of new shares. If it fails, it may not be able to continue trading. The company said it expected losses to continue throughout this year, despite having reduced staff from 70 to three.

It is already in talks to sell Bankside, its wholly-owned subsidiary which owns the Tate Tower scheme on Hopton Street, Southwark. Earlier this year it was revealed that penthouses in the unbuilt tower would cost ?10million.

The residents' case against the tower has just been heard by the Appeal Court. Judgment has been reserved with no date given as to when a decision will be announced.