The developer behind a £50m housing scheme placed in limbo by the collapse of South West construction giant Midas Group Plc says it is now trying to work out how to finish the project.
The Nationwide Building Society’s 239-home eco-friendly Oakfield scheme, in Swindon, was being delivered by Mi-space, the housing arm of Exeter-based Midas.
Work began in 2021 and was scheduled for completion by Spring 2022. It was progressing until Midas hit the rocks and has now gone into administration with the loss of 303 jobs.
Although the building services division of Mi-space (海角视频) Ltd, also now in administration, was acquired by Bell Group, which has bases in Plymouth and Taunton, the construction arm of Mi-space had been transferred to another Midas subsidiary, Midas Construction Ltd, which is also now in the hands of administrators.
It means that work on the brownfield development is now in limbo and Nationwide has been in urgent talks with Midas’ administrators at global business advisory firm Teneo Financial Advisory Ltd.
But the building society said it is committed to the Oakfield project and hopes to be able to restart work. A Nationwide Building Society spokesperson said: “We appreciate this is a very difficult time for all those who are part of the Midas Group, its subcontractors and partners.
“We’ve worked closely with Mi-space over the last few weeks, and we have made contact with the administrator as we continue to consider our next steps.
“Nationwide remains fully committed to the project and we are hopeful that work on site can resume soon. We’ve made fantastic progress with Oakfield and we will work to overcome these challenges as we deliver on what will become a showcase in eco-friendly, community-focused housing, in our hometown of Swindon.”
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Meanwhile, a Manchester-based law firm said it has been contacted by former Midas employees who claim they were not properly consulted during the redundancy process and are looking to pursue legal action.
Aticus Law is now looking into the claims, and said that if successful, those involved would be entitled to claim a Protective Award which of up to eight weeks’ pay in compensation, with a cap of £544 per week.
Mohammed Balal, of Aticus Law, said: “Unfortunately, the collapse of businesses in a variety of different sectors continues to dominate the news headlines, and for every business that has entered into administration there has also been a raft of redundancies.
“In the case of Midas Group Plc, it is understood that there are more than 300 employees who have also been affected. Staff members have had their lives turned upside down as a result of the collapse, and it is understandable that they are feeling anxious and concerned about the future.
“While many people think that as the business has collapsed there is nothing that can be done, those affected actually have the right to hold the company accountable. Under the current employment law if a business is making more than 20 employees redundant at one establishment, they must follow the correct consultation process.
“We’re obviously in the very early stages of understanding what happened in this instance, based on what our clients are telling us, that didn’t happen at Midas Group Plc.”
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He said the firm is investigating whether there are grounds to claim for a Protective Award, compensation awarded by an Employment Tribunal if an employer fails in its duties. He added: “Many people don’t realise you can only get a Protective Award payment if you are included as part of the claim and are listed as part of the Schedule of Claimants attached to the Tribunal Judgement. It’s important to make sure your name and specific job title is included.”
Midas was recently ranked as the ninth largest private sector firm in the South West, by the Western Morning News Annual Business Guide 2021, with a reported turnover of £291,267,008 and 498 employees. But rumours had been circulating in recent weeks that the company was in financial trouble, after it announced a £2m loss in 2021 - its first deficit in 40 years of trading. Midas Group and its subsidiaries Midas Construction Ltd, Midas Retail Ltd, Mi-Space (海角视频) Ltd, Mi-Space Property Services Ltd, Midas Commercial Developments Ltd and Falmouth Developments Ltd are all now in administration.
The fall of Midas