Three Jersey construction companies cease trading due to housing market downturn and debts
ITV Channel reporter Lisa Hartle reflects on the challenges facing Jersey's construction industry
Three construction firms in Jersey have ceased trading, leaving 78 people jobless.
Kalmac Construction, MAC Energy and Eden Interiors announced on Monday 22 July that they have applied for insolvency "with great disappointment and sadness".
The firms say they have lost two-thirds of their work over the past year due to the downturn in Jersey's housing market.
Despite attempts to diversify their business and a recent expansion into Guernsey, the three companies explain they were unable to raise enough funds to overcome "historic and ongoing bad debts".
They add: "We are absolutely devastated that with the ceasing of the companies, this also involves our 78 employees losing their jobs and livelihoods which in itself is heartbreaking.
"We understand that this news will come as a shock and we deeply regret the impact this decision will have on all our employees, clients and supply chain."
The businesses say they will work with liquidators to try and protect these groups' interests during "this extremely difficult and distressing time".
Steve Jackson, Group Director for Jersey Government's Customer and Local Services, says they can offer all affected employees and their families free help and guidance.
He explains: "Officers will ensure that they have the support they need to understand all of the financial and employment support that will be made available at this difficult time."
The collapse of these firms has sparked concerns as it comes just a year since fellow construction companies Camerons and JP Mauger folded.
The island's Chamber of Commerce says: "This is another blow for Jersey's construction industry and further evidence, if it was needed, of the challenging conditions the construction and development sector face at present."
It has called on private and public sector clients to continue to invest in projects to keep the sector afloat.
It also urged Jersey's government to "speed up" its future projects and help local tradespeople with opportunities to deliver quality work.
The Chamber adds: "The sooner these projects can be turned into on-site activity, the better the chances of the local industry surviving the present challenging conditions."
Jersey Construction Council Chairman Adrian De Gruchy explains: "Brexit, Covid, bank interest rates and spiralling material price increases have had a lasting effect and our industry is trying to financially manage the delivery of affordable projects, so as to avoid those long troughs which a business may never climb out of."
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