Midas administration move: Government asked to step in

The Fitzroy luxury seafront apartments in Falmouth were built by Midas Construction Ltd

Council leaders have called on the government's Levelling Up secretary to save a struggling construction firm.

Midas, one of England's biggest privately-owned construction and property service companies, filed an administration notice last week.

The Liberal Democrat leaders of Torbay, Teignbridge and North Devon Councils wrote to Michael Gove for help.

His office said it had "no comment at this time". Midas bosses said they were looking for "the best outcome".

With its construction arm Midas Construction and housing division Mi-Space, the group has a turnover of almost £300m and 500 direct employees, with many more workers through subcontracts.

The company, which has offices in Indian Queens, Exeter, Newton Abbott and Bristol, lost more than £2m in the last financial year.

It blamed the losses on the pandemic, shortages of materials and labour and a significance rise in costs caused by inflation, the Local Democracy Reporting Service (LDRS) reported.

Midas celebrated the Fragrance Group contract for two contracts in Paignton back in 2020

The leader of Torbay Council said the company's position could "significantly impact on thousands of jobs and businesses in the South West".

Councillor Steve Darling said the Levelling Up Secretary "must step in to stop this engine of regeneration from collapsing and sending the South West's economy in to reverse".

Midas currently has a contract with Torbay Council to build an £11m Premier Inn, build nine affordable homes in Paignton and improve a school in Torquay.

A Torbay Council statement said it was "saddened" to hear the news and was continuing to work with Midas to "identify issues and solutions and any further implications that might need attention in the future".

Midas is Teignbridge District Council's main contractor and the council said it was "investigating alternative options" while the construction firm is in its current phase of appointing an administrator.

Last week, Midas said the company was continuing to operate while directors searched "to achieve the best outcome" for the business and those affected by it.

"Midas is committed to pursuing an outcome that will achieve continuity for our live contracts and asks all our valued stakeholders to remain supportive of the group at this time."

Cornwall Council has a number of contracts with the firm, while the councils for Devon, Exeter and Mid Devon said they have no current projects with Midas.