Wed, 19 Jun 2013 | ADMINISTRATION
Mel Davison Construction has entered administration after tightening margins pushed up the financial pressures on the firm to an unsustainable level.
Based in Belfast and Portdadown, the business was established in 1989 by Mel Davison and his wife Paula Davison. Mr Davison has remained with the company in the role of chief executive. The business employs around 150 staff, with much of its work based around the four maintenance contracts it holds with the NI Housing Executive (NIHE).
It is unclear exactly what will happen to the business now. Meetings are set to take place between the administrators and senior officials from the NIHE to discuss the continuation of Mel Davison's service to NIHE tenants with the minimum amount of disruption to contracts.
Further discussions are due to take place regarding the future of the staff. Earlier this week around 50 workers organised a protest on the west Belfast site after being told they are to be laid off.
Cavanagh Kelly has been appointed to handle the administration. A spokesman for the firm said: “Tightening margins in MDC's activities have resulted in increased financial pressures that have proven unsustainable.”
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