Wed, 09 Feb 2022 | ADMINISTRATION
Property services business Mi-Space (UK) has been sold to Bell Group after its parent company, construction firm Midas Group, confirmed that it had entered administration. Mi-Space was one of five businesses to file notice of intention to appoint administrators – alongside Midas Group, Midas Construction Ltd, Midas Commercial Developments Ltd and Midas Retail Ltd.
Richard Hawes and Matt Smith of Teneo Financial Advisory were subsequently appointed administrators of Midas Group and its subsidiaries and sealed the successful sale of Mi-Space, preserving 46 jobs at the property services firm.
The acquisition grows Bell Group’s presence across the South West and Wales and secures a business which contributes economic activity valued at around £20 million per year to the local economy, as well as significant supply chain links.
Mi-Space offers a range of property improvement services to clients in the South West and Wales, including retrofitting and energy efficiency upgrades. Its clients include Bristol City Council, Ovo Energy, Cornwall Housing Association and Sanctuary, among others.
Joint administrator Richard Hawes commented: “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.”
Founded in Devon in 1976, Midas Group grew to become one of the UK’s largest construction and property services firms. Working across a wide array of sectors, the group had around 500 employees and reported turnover of £291.2 million.
However, the group had recently come under a range of pressures relating to the COVID-19 pandemic, material and labour shortages and cost inflation. Amidst these issues, the company slumped to a £2 million loss last year, the first deficit in the group's history.
Midas Group Chairman Steve Hindley said: “The disruption and supply chain inflation caused by the COVID-19 pandemic resulted in a number of critical contracts being postponed or cancelled. The resultant impact on the group’s working capital led to severe liquidity pressure and meant the group was no longer able to operate.”
Following the group’s administration, three major hotel builds operated by Midas Construction and worth over £40 million have been placed on hold. These include two Paignton Esplanade hotels and a new Premier Inn in Torbay.
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