Construction firm JP Mauger 'no longer viable' as business ceases trading with 51 jobs lost
A second major construction firm in Jersey has gone into liquidation, with 51 jobs being lost.
The collapse of JP Mauger comes just weeks after Camerons and its parent company, the Garenne group, ceased trading.
JP Mauger has recently been taking on smaller high-end projects, with work since the coronavirus pandemic failing to cover the costs.
Staff have been told not to come to work tomorrow, but the company has reassured clients that any work undertaken will be finished with minimal disruption.
In an email to clients, staff, suppliers and subcontractors sent on Tuesday 2 May, the company said the decision was made "with a heavy heart", but the business "is no longer considered viable":
"It is with great regret that we announce the closure of our business due to trading difficulties that we have been unable to overcome over the past three years, despite our best efforts.
"Although there were potential turnarounds with considerable new projects about to commence, continuing would have posed a further risk to other employees, clients, companies and trade partners, which is something we can no longer consider."
The email continued: "Our business was saved from similar circumstances in 1996, built on a model that delivered great service and quality.
"However, local market conditions, that stretch as far back as the 2007 recession resultant labour shortages have made it increasingly difficult for the construction industry in Jersey, and we have struggled to adapt."
The company says since 2020, it has "struggled for profitable work" but made the decision to continue trading:
"Quarter 1 is always challenging for builders with [the] Christmas shutdown impacting on January and February income, however, the start of 2023 showed potential as the 2022 projects should have commenced, unfortunately, as of this point in time, projects have still yet to start, and combined with our inability to further support the business by way of investment due to circumstances outside our control, our attempts to halt the downward trend has become untenable, and we can no longer continue the business as a going concern."
JP Mauger concluded: "We understand that this news will come as a shock and disappointment to all of you, and damage some trading partners with whom we have shared many years of trusted trading.
"We recognise that we have broken the trust that you placed in us, and we deeply regret the impact this decision will have on all of our stakeholders."
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