Construction firm collapses with all jobs lost
A Nottinghamshire building company has entered administration, with all 26 staff losing their jobs.
Opus Restructuring & Insolvency partners, Louise Freestone and Mark Ranson, were appointed as administrators of Mansfield-based Minster Building Company on 19th July 2021.
Minster, which was incorporated in 2007, specialised in the construction of supported living facilities for vulnerable citizens. Unfortunately, it has experienced delays in planning and construction processes due to the pandemic, which combined with price increases in building materials meant that its current projects had become significantly loss-making.
Work at all of its sites, which ranged between the East Midlands through to the North East, had ceased prior to the appointment of the Administrators and all staff have been made redundant. Prior to its collapse, Minster had 26 employees. The administrators will not be continuing to trade because of the losses on the contracts.
Trade suppliers are believed to be owed some £1.2m. It is too early to know whether there will be any payment to these and other creditors. Unpaid liabilities owed to HMRC amount to £170,000. Employee claims are estimated to be £140,000, some of which will be dealt with through the government’s Redundancy Payments Office.
Freestone said: “It’s a great shame that a long-established construction business has been laid low by the knock on effects of the Coronavirus crisis. Not only have jobs been lost and suppliers left nursing substantial losses, but the vulnerable people who would have been housed in the properties being built by the Company will suffer as a result of the inevitable delays in completing these projects.
“The UK construction sector is facing acute difficulties as a result of the pandemic and the severe disruption it has caused to its operational processes, supply chains and labour resources. Sadly, Minster will not be the last failure in this vital industry.”