300 jobs lost in South West as construction firm Midas goes into administration
Building projects across the region have ground to a halt
Last updated 9th Feb 2022
The collapse of a South West construction firm, with a base in Cornwall, has left question marks over the future of a number of building projects.
Founded in Devon in 1976, the group is one of the UK’s largest independent construction and property services providers.
Midas delivers a complete range of construction related services, from seven regional offices across the South West and Wales, across numerous sectors including residential, leisure, education, industrial and healthcare.
It is estimated the company, based in Exeter, supports over 10,000 jobs in the supply chain across the region.
Following a sales process led by Deloitte and Teneo ahead of the administrators’ appointment, the administrators have completed a sale of the group’s property services business, called Mi-Space, to Bell Decorating Group Limited, preserving 46 jobs.
The Group’s construction operations have ceased with immediate effect and, with the exception of a small number of people retained to assist the administrators, the group’s remaining 303 employees have been made redundant
How could this affect Cornwall?
Last week, prior to the collapse, Cornwall Council said it was working to ensure that construction projects with Midas can continue to be delivered should the firm go into administration.
The council has a number of contracts with for schemes which include homes, schools and workspace projects.
Among the contracts that Midas has with Cornwall Council and its wholly owned development company Treveth are hundreds of new homes.
The company has also been appointed as construction partner with a £5million contract to build the Penzance Creative Hub where work started in October last year.
Midas has also been behind a £6.3m STEM and Health Skills Centre in Bodmin for Truro and Penwith College. This is due to be completed this spring.
The company has also recently completed a new extension for Threemilestone Community Centre which was formally opened at the weekend.
On the Midas website its news centre lists some of the other projects that it is currently involved in in Cornwall.
These include a major extension at Redruth School, 140 new homes in Quintrell Downs, 100 homes in Bodmin and a major 600-home development at Maudlin Farm, Liskeard.
Cornwall Council’s contract register shows that Midas has been appointed to deliver school maintenance works in west and east Cornwall worth £8m. That two-year contract is due to end in March.
The Local Democracy Reporting Service asked Cornwall Council to provide details of all the contracts it has with Midas but did not get any details.
In a statement last week, the council said: “The council was made aware on Friday January 28 that Midas Group was filing notice for administration. The council has a number of projects with Midas Group across education, housing and work-space.
“The council has contracts in place for the delivery of these projects and will work with Midas through the formal administration process triggered on Friday. At this stage the council has been preparing and continues to contingency plan across all Midas contracts to support the successful delivery of these projects into the future.”
'A very challenging time'
Stephen Hindley, group chairman, said: "The disruption and supply chain inflation caused by the Covid-19 pandemic resulted in a number of critical contracts being postponed or cancelled.
"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."
Richard Hawes, joint administrator from Teneo Financial Advisory Limited, said: "We are pleased that we have been able to deliver a sale of the group's property services division
"However, 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."
Midas Group Limited has a number of offices across the South West including Indian Queens, Exeter, Plymouth, Bristol and Newton Abbot.
Some jobs will be protected
A spokesperson for the Bell Group said the acquisition of Mi-space (UK) Ltd protected an estimated 110 direct and indirect jobs.
The said: "Bell is a market leader in the sector and already has offices across the South West; in Plymouth, Taunton, Bristol, and South Wales, with plans to open up a new office in Exeter in 2022. The family-owned firm has more than 2,200 employees nationally, with 312 of those in the South West, where it also supports a further 220 supply chain jobs.
"The deal to purchase the Mi-space business and certain of its assets out of administration secures economic activity valued at up to £20m annually to the local economy, significant supply chain links and indirect employment."
Craig Bell, Bell Group Chief Executive, said: "We are very pleased to have been able to complete this acquisition of Mi-space (UK) Ltd and to be protecting some of the jobs and a significant part of the Midas Group business.
"The expertise and enthusiasm within Mi-space (UK) Ltd is an excellent fit for Bell Group as we continue to grow our business based on true family values, excellent customer service and our support for our employees and for local communities.
"We look forward to welcoming the Mi-space team into Bell Group and we would also like to thank current Mi-space customers for working with us and helping us support local jobs and local supply chains.”