300 employees left out of pocket as amount owed by group to suppliers nears £60m

Around 300 employees of collapsed contractor Midas are owed more than £4.5m, an update by administrator Teneo Financial Advisory has revealed.

In documents filed at Companies House, 239 employees of Midas Construction are owed £3.2m while a further 61 employees at parent Midas Group are out of pocket by £1.4m. It means each employee is owed an average of £15,333.

The update adds there is a £4m deficit in the Midas Group pension scheme while the report for Midas Construction shows it owes its parent a further £5m.


Midas collapsed in February after more 45 years of trading

And the scale of the losses facing hundreds of unsecured suppliers of Midas Construction is laid bare with the amount owed, including the £5m to Midas Group and the £3.2m to employees, topping £51m. Several firms are owed north of £100,000.

But Teneo warned the amount available to unsecured creditors of Midas Construction currently stands at just £3.4m.

The report for Midas Group said unsecured creditors, including employees, are owed £7.3m with the amount available to this group currently standing at nil.

Exeter-based Midas sank into administration in February with administrators saying the firm, which was set up in 1976, suffering a “rapid deterioration in trade from November 2021 to January [this year] as the group was unable to pay subcontractors to complete ongoing works”.

In an earlier report, Teneo said Midas, which employed 365 people at the time of its failure, had a provisional turnover of £223m in the year to last October – down from the £259m it reported in its last 12 month reporting period for the year to April 2019.

It added: “The business was severely impacted by the pandemic during FY20 which resulted in periods of closure for the business and adjusted operating conditions upon re-opening.

“The group also faced inflationary pressures within its cost base, including higher labour and material costs.”

Its £34m turnover property arm Mi-Space was sold to Bell Group for a knockdown £230,000 in a pre-pack sale.