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A construction company from Nottinghamshire has entered the administration with all 26 employees losing their jobs.
Opus Restructuring & Insolvency Partners, Louise Freestone and Mark Ranson, were appointed administrators of Mansfield-based Minster Building Company on July 19, 2021.
The Münster, founded in 2007, has specialized in the construction of assisted living facilities for citizens in need of protection. Unfortunately, due to the pandemic, there were delays in planning and construction processes, which, in connection with price increases for building materials, meant that ongoing projects were clearly in deficit.
Work at all locations, which stretched from the East Midlands to the Northeast, had ceased prior to the appointment of the administrators, and all employees had been laid off. Before its collapse, Münster had 26 employees. The administrators will no longer act due to the losses from the contracts.
It is believed that trade suppliers owe around £ 1.2 million. It is too early to know if a payment will be made to these and other creditors. Unpaid debt to HMRC is £ 170,000. Workers’ claims are estimated at £ 140,000, some of which will be handled through the Government Compensation Office.
Freestone said: “It is a great shame that a long-established construction company has stalled from the effects of the coronavirus crisis. Not only have jobs been lost and suppliers have left significant losses, but the vulnerable people who would have been housed in the properties the company built will suffer from the inevitable delays in completing these projects.
“The UK construction sector is facing acute difficulties due to the pandemic and the serious disruption it has caused to its operations, supply chains and workforce. Unfortunately, Minster won’t be the last failure in this vital industry. “