Collapse of construction firm puts 33 jobs at risk

A grey warehouse with a large red shutter door that is closed and a sign reading Mitchell Building Contractors
Image caption,

The firm was based in St Peters Technical Park on La Grande Route de St. Pierre

  • Published

A construction company has ceased trading and 33 jobs are at risk after its position became "untenable", its managing director said.

Harvey Mitchell said Mitchell Building Contractors (MBS) in Jersey had not recovered since the Covid-19 pandemic and had faced "spiralling costs".

On Wednesday a letter to customers was posted on its premises telling them liquidators were being appointed with support from corporate advisers Begbies Traynor.

In July three other Jersey construction firms ceased trading, which the chamber of commerce said at the time was "not surprising" due to "stressed" trading conditions.

Image caption,

The limited company ceased trading on Wednesday

Two other construction companies collapsed in Jersey in 2023.

The letter said creditors would be written to "in the near future".

Speaking to the BBC, Mr Mitchell said "the position we were in was untenable" and added he found planning in Jersey to be "broken" and "ill-conceived".

The Jersey Construction Council chairman Adrian De Gruchy said the council was "saddened" at the announcement and the impact it had on staff, sub-contractors and suppliers.

He said the recent launch of a construction and engineering programme "should give businesses some confidence" about a "proposed pipeline" of future construction projects.

MBS worked in various areas of construction, including residential, commercial and new builds.

The government declined to comment on the closure.