A Bradford property group alleged to owe hundreds of thousands of pounds to landlords and investors has been forced into administration.

Today it emerged that the combined debts of PPM investments Ltd and its two sister companies Partners Property Management Limited and Partners Property Management Sales Limited are at least £350,000 and likely to rise.

PPM Investments Ltd is now in the hands of adminstrators, and the two sister companies now face being wound up by angry investors who have been told they are unlikely to get their money back.

Linda Watts, who founded her property businesses in 2000, is in hospital following what is reported to be a mental breakdown. It is thought she is likely to remain there for a month.

A group of 17 investors is being represented by Leeds solicitors McKay Law, which has passed a dossier of alleged irregularities to the Department of Trade and Industry and the police.

Brendan Guilfoyle and Andy Wood, of Leeds-based business recovery specialists P&A, have been called in as administrators of PPM Investments Ltd.

"It appears that there are monies due to this company by developers which the administrators will collect," said Mr Guilfoyle.

"The administrators have a statutory duty to investigate the conduct of the directors, including shadow directors, and report any matters of concern to the DTI within six months and the administrators will also report any activities that come to their attention and may be criminal to the National Criminal Intelligence Service.

"Regretfully, the circumstances that appear to prevail in the associated companies Partners Property Management Limited (a letting agency) and Partners Property Management Sales Limited (an estate agency) do not permit the appointment of administrators.

"I have therefore invited clients of McKay Law to present petitions to wind up these companies and in that way the Official Receiver will eventually be appointed liquidator and will undertake an investigation into the companies' affairs at the expense of the Government. This is preferable as, otherwise, I have concerns that there will be insufficient funds to fund the extensive investigation that creditors are calling for."

Mr Guilfoyle said Mrs Watts had agreed to "fully co-operate" with the administrators and solicitors.

He added that his investigation into PPM had revealed that landlords and investors had been frustrated that they had not been able to speak to anyone at the company. Some had "staked out" PPM offices in the hoping of speaking with Mrs Watts or directors including her brother and daughter.

Vehicles and property associated with the company have been vandalised as the extent of the PPM crisis deepened.

Mr Guilfoyle said there were few indications as to where PPM clients' money had gone but he said there was no evidence to support claims that it had been transferred offshore.

McKay Law, representing clients owed up to £60,000, said it believed PPM's liabilities were greater than first feared.

Solicitor Rick Armstrong said he believed the figure was about £350,000 but was likely to rise considerably since many creditors such as dozens of small suppliers with whom PPM dealt, had yet to come forward.

Investors, already enraged by their treatment, greeted the news of PPM's official collapse with even greater anger.

Investor Bill Liddy, of Newcastle-upon-Tyne, who is owed £7,000 he paid out for options on apartments, had a £5,000 cheque from PPM refused by the company's bank.

"There must be a consequence for her to face from her activities," said Mr Liddy. "There's no way we'll get the money back."

Bradford-based Colin Megson who had "substantial" investments in properties offered by Mrs Watts agreed there was little likelihood of recouping his money.

He said: "Unfortunately unless you take the law into your own hands she will get away with it. I can't afford to lose the money I'm losing but I feel sorry for the young kids who saved up for their deposits."

Landlords Wendy and Jim Greenwood, who used PPM to rent out properties in Stanningley and Horsforth, were also angry.

"I'm disgusted there's nothing we can do," said Mr Greenwood. "Why has this been allowed to happen? I'm really annoyed that the system is saying, 'You're on your own'."

Neither Mrs Watts nor any other PPM director has responded to the allegations made by investors.

However, during a lengthy T&A investigation Mrs Watts denied any cheques had not been cleared by her bank or that there had been any wrongdoing.