Churchill Retirement, the company run by the two sons of John McCarthy, the co-founder of McCarthy & Stone, has fallen 拢2.4m into the red

The pre-tax loss in the year to 31 May 2008 compared with a profit of 拢6.8m in the previous year. Dean Marlow, the firm鈥檚 finance director, blamed the loss on the recession.

Turnover was also down, falling 12% from 拢48m to 拢42.3m.

Marlow said: 鈥淩etirement housing has been hit by the problems in the wider economy.鈥�

Churchill is run by Clinton and Spencer McCarthy and it was rumoured earlier this year that the family would mount a takeover bid for ailing retirement specialist McCarthy & Stone.

The group ended the year with net debt of 拢91m but Marlow said more than 拢60m of that was not repayable until 2022.