'Tragedy’ as construction firm Midas shuts down and hundreds of jobs lost

MIDAS
Midas has gone into administration Credit: BPM Media

More than 300 people will lose their jobs as construction giant Midas shuts down - with a warning the "ripple effect" could be far worse.

The Midas Group Limited - which has seven offices across the South West of England and Wales - has shut down after appointing administrators.

While 46 jobs have been saved by the sale of the firm's property services business, Mi-Space, a further 303 employees have been made redundant.

Midas was set up in Devon in 1976 and has completed millions of pounds worth of projects in the UK including for healthcare, residential and leisure.

The company's closure has been described as a "tragedy" amid fears the impact on its suppliers could see job losses in the South West reach as high as 1,000.

The firm has several ongoing projects including homes, schools, hotels and warehouses. Its current projects include a contract with Torbay Council to build an £11million Premier Inn as well as a £1.9million school in Redruth and a £6.3million education centre in Bodmin.

  • Chair of the South West Business Council Tim Jones on impact of Midas collapse

Chair of the South West Business Council Tim Jones described the situation as a "huge tragedy".

He added: "It's a very sad day for an awful lot of employees of the company. Our worry is not just for them, it's for a whole range of other people who rely on this organisation... sub-contractors, suppliers and a whole range of other people.

"Our concern is the ripple effect of this will be very significant - we're talking at least 1,000 job losses potentially."

Joint administrator Richard Hawes said: “This is a very challenging period for the group’s stakeholders, and in particular its employees and sub-contract supplier base.

"Our immediate focus is on ensuring the impact on employees, creditors and customers is minimised.”

The Midas Group's chairman Stephen Hindley added: “The disruption and supply chain inflation caused by the Covid-19 pandemic resulted in a number of critical contracts being postponed or cancelled.

"The resultant impact on the group’s working capital led to severe liquidity pressure and meant the group was no longer able to operate.

"It has been a great privilege to work with our many employees, suppliers and customers over the years and my heartfelt thanks goes to them for the tremendous support that they have given to the business.”