Midas Construction goes into Administration
Midas was an Exeter-based contractor operating in housing, property development and property services.
It went into Administration ‘suddenly’ blaming Brexit, the delay or cancellation of contracts, cost inflation and so forth.
At the time it had employed nearly 500 staff and had a turnover of nearly £300 million.
Importantly, it went out of business owing more that sixty million pounds including £4.5 million to former employees
Imagine if you were a Client who had hired this company to build your hotel or housing estate etc.
If you had overpaid them, all that money is gone.
The important thing for Clients and subcontractors to remember is that Contractors do not have any assets, they are just essentially a shell company that is formed for the specific function of acting as main contractor.
If a Contractor goes out of business, the top Directors will all get new jobs elsewhere and eventually so too will the project managers, quantity surveyors, engineers etc.
It is always the Client and the sub-contractors, suppliers and banks that lose money when a Contractor goes out of business.