On Friday 28th January Exeter-based construction giant Midas filed a Notice of Intention to appoint an administrator, leaving many staff, suppliers and creditors naturally concerned. Leaders of three councils in the South West have written to the Government asking for help to minimise the impact on thousands of jobs and businesses in the region.
With a reported turnover of £291,267,008 and 498 employees, Midas had ongoing construction projects throughout the region and has offices in Indian Queens in Cornwall, Exeter, Newton Abbot, Bristol, Newport in South Wales, and Southampton. It announced a £2m loss in 2021 – its first deficit in 40 years of trading.
We understand that on Tuesday 8th February, Midas entered administration with Teneon being appointed Administrators for the construction giant. The Mi-Space part of the business has been sold to the Bell Group saving the jobs of 46 staff who have been TUPEd over.
The sad news is that 303 jobs have been lost, and countless associated businesses and jobs affected as the ninth largest private sector firm in the region collapses. The supply chain impact will no doubt unfold over the next few days, bringing further devastating news to many organisations and people within. Richard Hawes, Joint Administrator acknowledged “…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.”
Has your business been affected by this?
If you’re a creditor of a business, owed money or have assets tied up in a business that enters Administration, a Licensed Insolvency Practitioner may provide you with a specialist service designed to deal with the aftermath of business failure.
Becoming a creditor of a business that goes under can be extremely stressful and present very complex and time-sensitive challenges that you need to act on in order to protect your own business or finances.
Supporting your business to achieve the best outcome could come in the form of…
- Proof of debt submissions
- Defending challenges to debt submissions
- Assessment of office holders’ proposals
- Attendance at creditor’s meetings
- Engagement with the office holders in correspondence
- Advice on retention of title claims
Is there help available for you and your business?
Yes. Reach out to us, your accountant or a Licensed Insolvency Practitioner. They can attend meetings on your behalf and put forward any matters you want the office holder or other creditors to be aware of (such as misconduct of the directors), and raise important questions at the meeting.
Kirk Hills Chartered Accountants have vast experience with Insolvency cases – partner David Kirk is a Licensed Insolvency Practitioner, so we’re able to support you throughout this process, helping you navigate the complex maze of rules and procedures that comes with any formal insolvency.
To help you achieve the best possible outcome for you and your business, you may want to consider these five immediate steps…
1. Do you have insurance for the bad debt you can claim on? E.g. Euler Hermes trade cover.
2. If you have supplied goods were they supplied under a valid Retention of Title clause? If yes, go and collect them.
3. Work out what you are owed including unbilled work-in-progress and any damages for breach of contract to maximise your claim. The more you can claim the more you are likely to get back.
4. Submit a proof of debt form to the Administrators when they send you the claim form to fill in. Reach out to us for a sample one to help you fill this out.
5. Consider a VAT bad debt relief claim for VAT you have already paid over on unpaid sales invoices.
If the effect of the loss is going to have a serious or catastrophic impact on your business take early advice from someone like David Kirk, who is a Licensed Insolvency Practitioner. Any initial meeting is free of charge and you don’t have to use us but it is good to know your options.