Demolition firm to axe jobs after largest contract cancelled

The firm who won the contract to demolish the intu Broadmarsh shopping centre ahead of its redevelopment has said the work has been “cancelled” – and that it will be forced to shed jobs.

The Coleman Group says it will be undertaking an internal review and will be making redundancies after the demolition work on the Broadmarsh was cancelled following stricken mall operator intu’s debt crisis. Coleman Group says the contract was its largest single project. Other projects paused but not cancelled include work at Euston station for HS2, the Coventry Point office block deconstruction, and work for the National Grid.

TheBusinessDesk.com understands it is the first time that the Broadmarsh plans have been described as “cancelled”.

A consultation programme on the level of redundancies is currently underway which will determine which roles are at risk. Where possible headcount reduction will be achieved through voluntary redundancies, said the Birmingham firm, which employs 212 people.

Group chief executive Mark Coleman said: “It is devastating that good people will be leaving us as a result of this restructure, but like many other businesses in the UK we have faced the most difficult and challenging trading conditions of our lifetimes.

“We foresee our business as operating more efficiently with an annual revenue of £12 million – £15 million, compared to the current level of £25 million.

“We see a future where our management expertise remains at the core of our capabilities. By leveraging industry partnerships, we will become more cost-effective and flexible.”

Coleman added: “After 57 years in this business we have a wealth of knowledge, robust client relationships and a strong heritage to draw on. We will emerge from this restructure not just nimbler – and with a more scaleable model – but as leaders in the use of technology and smart partnerships to deliver the most efficient and effective results for our clients.”

Meanwhile, intu could file for administration as early as Friday, according to Property Week. The trade publication said that intu is holding talks with its lenders this week.

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