Former directors of Midas Construction Ltd have come out in support of subcontractors owed a combined £22m by the stricken firm and warned the debt could drive many out of business and cause personal hardship.
Len Lewis, Tony Davis, Frank Heal and Richard Smith, in a joint statement, said they feared the outcome for small business creditors will be “terminal” and lead to “undeserved anxiety” and said the Midas situation is an example of how the industry is “failing its subcontractors”.
All four men served as directors of Exeter-based Midas Construction well before its current financial problems pitched it, and parent firm Midas Group Ltd, into administration owing cash to almost 2,000 small enterprises in its supply chain.
