Fears of WIDER job losses across south west after construction firm's collapse

Business leaders and unions are worried about a 'ripple effect' after Midas went into administration

Author: Emma HartPublished 10th Feb 2022

There are fears the collapse of a big south west construction firm could have a 'ripple effect' in terms of job losses.

Devon-based Midas, which employs over 300 staff directly, has gone into administration.

However there are concerns that wider losses could be felt in terms of sub-contractors and suppliers.

The South West Business Council has previously said job losses could reach at least 1,000.

Spokesperson Tim Jones said: "This is about as bad as it gets in terms of a shockwave through the construction industry, particularly across the south west.

"This company's been around for 40 years - they've been delivering a lot of our main capital projects from the Bristol area, right down to the tip of Cornwall.

"We'll not only lose the capacity of this company to deliver, but also it will affect a lot of jobs - both direct employees and, really sadly, a lot of sub-contractors who work for them; this is a really big shock for the system".

'This will produce an earthquake across the sector'

Deborah Hopkins, regional officer for the Unite union in Cornwall, is concerned about the impact on working families.

She said: "The real crisis is here is that is a significant proportion of the working population in an area like Cornwall.

"While there have been rumblings and rumours about this since January and since they posted losses last year, it doesn't sooth the souls of people who've got children to feed and rent to pay and mortgages to pay.

"This is going to produce an earthquake across this part of the sector and there are going to be people who are losing income and losing contracts and losing money, across the system, who may get nothing and don't know where the rents are coming from or how to pay the bills".

Midas has a base in Cornwall and is involved in multiple ongoing projects across the Duchy, including in Penzance and Bodmin.

The Bell Group has bought part of the company, however it is unclear which schemes will be saved.

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