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Building firm JP Mauger has become the second local construction business to go into liquidation this year, following the collapse of Camerons at the end of February.
JP Mauger was significant player in the Jersey construction sector, particularly in the building of luxury homes.
The contractor cited tough trading conditions as the reason for its collapse, making it "increasingly difficult for the construction industry in Jersey".
51 staff have been made redundant.
Pictured: Major building contractor Camerons stopped trading with immediate effect earlier this year.
In an email to clients, staff, suppliers and subcontractors, the firm’s Owner and Managing Director Tadhg MacFirbhisigh said: “It is with great regret that we announce the closure of our business due to trading difficulties that we have been unable to overcome over the past three years, despite our best efforts.
“Although there were potential turnarounds with considerable new projects about to commence, continuing would have posed a further risk to other employees, clients, companies and trade partners, which is something we can no longer consider.
“Our business was saved from similar circumstances in 1996, built on a model that delivered great service and quality.
“However, local market conditions, that stretch as far back as the 2007 recession resultant labour shortages have made it increasingly difficult for the construction industry in Jersey, and we have struggled to adapt.
“As with everyone from 2020, we have struggled for profitable work. We made the decision in 2022 to continue trading, anticipating that considerable negotiated projects would commence.
“Quarter 1 is always challenging for builders with Christmas shutdown impacting on January and February income, however the start of 2023 showed potential as the 2022 projects should have commenced.
“Unfortunately, as of this point in time, projects have still yet to start, and combined with our inability to further support the business by way of investment due to circumstances outside our control, our attempts to halt the downward trend has become untenable, and we can no longer continue the business as a going concern.
“We understand that this news will come as a shock and disappointment to all of you, and damage some trading partners with whom we have shared many years of trusted trading. We recognise that we have broken the trust that you placed in us, and we deeply regret the impact this decision will have on all of our stakeholders.
“We want to assure you that we will work closely with liquidators to try and minimize the impact of this decision. We will be in touch with you individually to discuss the next steps and answer any questions you may have.
“We appreciate your understanding and patience during this difficult time, and we thank you for your support throughout our business journey.
“It is with a heavy heart that we take this decision, but we can no longer consider our business viable.”
More to follow..
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