Troubled South West construction giant Midas Group has confirmed that it wants to appoint an administrator in a move which has stunned the region.
The business, one of the UK’s largest privately-owned construction and property services companies, filed notices of intention to appoint an administrator on Friday, January 28.
This was for three companies: Midas Group, its construction arm Midas Construction, and its housing division Mi-Space.
Midas was recently ranked as the ninth largest private sector firm in the South West, by the Western Morning News, with a reported turnover of £291,267,008 and 498 employees.
But rumours have been circulating in recent weeks that the company was in financial trouble, after it announced a £2m loss in 2021 - its first deficit in 40 years of trading.
The company has important construction jobs ongoing throughout the region and has offices in Indian Queens in Cornwall, Exeter, Newton Abbot, Bristol, Newport in South Wales, and Southampton.
However, concerns were raised when it emerged that work has ceased on three major Midas Construction hotel projects in Torquay, and that the Coal Orchard development in Taunton had been hit by a dispute with subcontractors.
Midas has now confirmed its intention to appoint an administrator - a process which can save a firm from liquidation and halts pending creditor action.
In a statement, Midas said: “On Friday January 28, 2022, the company filed notices of intention to appoint an administrator in respect of Midas Group, Midas Construction Ltd and Mi-Space (UK) Ltd.
“This does not mean that Midas has entered into administration and the company continues to operate, while the directors work to explore all available options to achieve the best outcome for the business and our people, our customers, supply chain partners and all our stakeholders.
“Midas is committed to pursuing an outcome that will achieve continuity for our live contracts and asks all our valued stakeholders to remain supportive of the group at this time.”
In 2021, Midas blamed much of its losses on the Covid pandemic and in its statement said: “As has been well documented, there have been issues relating to the Covid pandemic, ongoing shortages of materials and labour, and significant cost inflation, which are providing challenges in the construction sector and across the UK economy, which have had a direct impact on Midas’s own operations.
“Over recent weeks we have been working closely with all our stakeholders to attempt to resolve the situation and are continuing to do so.”
If you want to stay updated on this story about Midas as it unfolds, you can sign up to our newsletter in the box below
