Midas files notice to appoint an Administrator

Work has ground to a halt on three Midas hotel jobs in Devon while subcontractors have walked off another site in Somerset following a payment row.

Midas has been building two hotels worth £30m in Torbay for the Fragrance Group .

And DevonLive said work had also stopped on an £11m Premier Inn for Torbay Council.

The Fragrance Group told the Enquirer: “Over the past three months the Fragrance Group has become increasingly concerned by the very limited progress on our two new Paignton seafront hotel developments, located on the neighbouring sites of the former Park Hotel and Lighthouse club.

“We are in constant discussions with the main contractors and are now reviewing our options to complete the development of these hotels.

“Our priority is to deliver these two new seafront hotels which mark a vital investment in the wider Torbay.”

The Somerset County Gazette reported that subcontractors had walked off the Coal Orchard development in Taunton following pay disputes.

A Torbay Council spokesperson said: “We are working with Midas to identify any issues which may be affecting the site and any required solutions.”

The Enquirer has also been contacted by subcontractors frustrated by late payments on Midas jobs.

One said: “A lot of firms on the job have been unhappy for a while about payments.”

A spokesman for Midas Construction said: “As is well known in the industry there are issues relating to Brexit, Covid, ongoing shortages of materials and labour, and significant cost inflation, which are providing challenges to project delivery and timescales.

“Over recent weeks we have been working closely with all our stakeholders to attempt to resolve the situation and are continuing to do so.

“On Friday January 28, 2022, the company filed notices of intention to appoint an administrator in respect of Midas Group, Midas Construction Ltd and Mi-Space (UK) Ltd.

“This does not mean that Midas has entered into administration and the company continues to operate, while the Directors work to explore all available options to achieve the best outcome for the business and our people, our customers, supply chain partners and all our stakeholders.

“Midas is committed to pursuing an outcome that will achieve continuity for our live contracts and asks all our valued stakeholders to remain supportive of the Group at this time.”

Latest results filed for Midas Group saw the contractor post its first ever loss in more than 40 years of trading.

Turnover for the 18-month period to 30th October 2020 fell to £291.3m resulting in a pre-tax loss of £2.4m while the company employed 498 staff.

Source: Construction Enquirer

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