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A local building firm that has been operating for 14 years ceased trading with immediate effect yesterday – with the closure leading to the loss of 33 jobs.
Mitchell Building Contractors confirmed this morning that the firm had ceased trading and applied for insolvency.
In a statement, Managing Director Harvey Mitchell said: “After over 14 years being in business it is with great sadness and heartbreaking regret that Mitchell Building Contractors has had no option but to cease trading as of 2 October 2024."
He explained that, despite surviving the pandemic, the company found the current marketplace "extremely difficult to trade in".
Pictured: Harvey Mitchell is the Managing Director of Mitchell Building Contractors, which ceased trading yesterday.
Mr Mitchell pointed to two main issues: a "broken planning system with ill-conceived policies" that has limited the number of available projects, and "spiralling labour, plant and material costs".
These factors, he said, combined to make continued trading "simply untenable" for the company.
“We're not seeing the volumes of work that we're used to coming through," he added.
Speaking to Express, Mr Mitchell called for quicker turnaround times from the planning department and criticised a policy that generally does not approve projects over 3,000 square feet outside the built-up zone unless they meet specific criteria.
He argued this policy contradicts efforts to attract high-net-worth individuals to the island, as it restricts the types of properties these potential residents seek to build.
"I can't, at the moment, see any light at the end of the tunnel for it to change until these problems are resolved," added Mr Mitchell.
The news comes after Kalmac, MAC Energy and Eden Interiors – all part of the MAC Group – applied for insolvency in July.
At the time, a joint statement explained that the contraction firms had “suffered greatly” over the last year, reportedly having lost two-thirds of their work in Jersey due to the “downturn” in the housing market.
Last year also saw the collapse of local building firms Camerons and JP Mauger.
Pictured: Major building contractor Camerons stopped trading with immediate effect last year.
Today, the Jersey Construction Council expressed its "its deepest sorrow to those immediately impacted" by the closure of Mitchell Building Contractors.
Chairman Adrian De Gruchy said: “We are saddened by the news about Mitchell Building Contractors having to cease trading with immediate effect and the impact this has on their staff, sub-contractors and suppliers.
“This unfortunate news follows the recent launch of the 'Island Construction and Engineering (ICE) programme', which should give businesses some confidence that there is a proposed pipeline of projects and enabling works to allow other developments to commence.”
He continued: “Despite recent business closures, the industry has a wide range of professional tradespeople, associated suppliers and consultants, with good long term career prospects.
“We will continue to work on site ready projects of all sizes and for private and public sector clients, to #GetJerseyBuilding again.”
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