Teneo appointed to Midas administration
Advisors from Teneo have been named as administrators of a Devonshire construction firm. Midas Group has collapsed after sustained supply chain disruption resulting from the on-going pandemic.
Founded in Devon in 1976, Midas Group is one of the UK’s largest independent construction and property services providers. The group delivered a complete range of construction related services, from seven regional offices across the South West and Wales, across numerous sectors including residential, leisure, education, industrial and healthcare.
However, along with the wider construction sector, Midas endured a major downturn in trade through 2020, followed by continued supply chain challenges in 2021. The uncertainty and supply chain inflation caused by the Covid-19 pandemic resulted in a number of critical contracts being postponed or cancelled – ultimately leading to the firm’s downfall.
Group Chairman Stephen Hindley commented, “The resultant impact on the Group’s working capital led to severe liquidity pressure and meant the group was no longer able to operate. It has been a great privilege to work with our many employees, suppliers and customers over the years and my heartfelt thanks goes to them for the tremendous support that they have given to the business.”
Richard Hawes and Matt Smith, both Senior Managing Directors at Teneo Financial Advisory were appointed as Joint Administrators to Midas and its subsidiaries. As Midas’ construction operations have ceased with immediate effect, 303 employees have been made redundant, while a small number were retained to assist with the administration process.
Teneo has moved quickly to preserve remaining operations however. A sales process led by Deloitte and Teneo ahead of the Administrators’ formal appointment enabled the administrators to complete a sale of the group’s property services business to Bell Decorating Group. The move has preserved Midas’ remaining 46 jobs.
Joint Administrator Richard Hawes noted, “We are pleased that we have been able to deliver a sale of the Group’s property services division. However, this is a very challenging period for the Group’s stakeholders, and in particular its employees and sub-contract supplier base. Our immediate focus is on ensuring the impact on employees, creditors and customers is minimised.”
Teneo’s Financial Advisory business comprises more than 300 specialists across Europe and the US, focused on four key service areas including business transformation, restructuring, capital advisory and bankruptcy and insolvency. The firm was initially created from a management buyout of Deloitte’s restructuring business.
