ICSM Business News: ‘disgust’ at construction firm Midas who have left 1,800 firms with nothing after £70 million collapse

Pic: Building

ICSM Business News: ‘disgust’ at construction firm Midas who have left 1,800 firms with nothing after £70 million collapse

By Harry Mottram: It was one of the most shocking construction company collapses when Devon based Midas collapsed in a mountain of debt in February this year. The workers were left unpaid to the tune of more than four million pounds, hundreds of suppliers were left out of pocket and one took a £600,000 hit after the adminstrators Teneo Financial Advisory  went through the books.

ICSM understands that Insolvency Service is also investigating the actions of the Midas directors Stephen Hindley, Alan Hope and Peter Skoulding, under the Company Directors Disqualification Act 1986. It is thought the investigation is looking into their conduct over the last three years and what action they took to stave off the collapse.

Writing in the trade publication Building Dave Rogers reported: “An administrators’ report earlier this year showed nearly 40 firms are owed at least six figures by the collapsed firm – with one contractor looking at a black hole in its accounts of more than £600,000. Nearly 1,800 firms unsecured firms have been left with nothing. A progress report filed at Companies House last week said the firm’s Newton Abbot office had been sold with the figure thought be around £1m. Teneo is hoping that a second office in Newport will fetch in excess of £1m. Teneo has previously said Midas collapsed after being impacted by the pandemic as well as higher labour and material costs.”

ICSM heard that if was cash flow problems that caused the crisis along with all the usual issues of the lockdowns, Covid, labour shortages after Brexit and price hikes for materials and interest rates.

Ian Carrotte of ICSM said the concerns were over what the company knew about their finances three years previously and whether the right steps were taken to mitigate the potential losses to suppliers and workers. It was thought the firm owed around £70m when it collapsed.


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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk

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