Tim Jones, Chair of the South West Business Council on how the job losses will affect people in the West country
Up to 1,000 jobs could be at risk and building projects halted across the South West as construction firm Midas has confirmed its intention to appoint administrators.
The business, one of the UK’s largest privately-owned construction and property services companies, filed notices of intention to appoint an administrator on Friday, January 28.
Midas was recently ranked as the ninth largest private sector firm in the South West, by the Western Morning News, with a reported turnover of £291,267,008 and 498 employees.
The construction giant has blamed the pandemic, ongoing shortages of materials and labour and a significant rise in costs.
Tim Jones, Chairman of the South West Business Council, described it as a "huge tragedy" for Midas employees, but says there will be a huge ripple effect.
"Our worry is not just for them it's for a whole range of other people who rely on this organisation that's been around for man years - sub-contractors, suppliers, and a whole range of other people", he said.
"Our concerns are that the ripple effect of this will be very significant, we're talking at least 1,000 job losses potentially.
"The market conditions at the moment are very difficult. We're seeing huge cost increases in building materials, there's a shortage of labour, we've already got a capacity problem.
"A number of projects that Midas have been building not only in the housing sector but also capital buildings, hotels, institutional buildings for educational establishments right across the peninsular, it's going to be very difficult to find replacements for that.
Mr Jones said it is sub-contractors and small businesses linked with recent Midas projects that will be fearful of the future at the moment.
"There are so many people who have depended for years on this company.
"This is a real crisis in the construction industry, a lot of people are going to get hurt by this and we need to make sure we're there with a safety net ready to quickly react to all the problems we anticipate."
A Midas spokesperson said: "As has been well documented, there have been issues relating to the Covid pandemic, ongoing shortages of materials and labour, and significant cost inflation...which have had a direct impact on Midas' own operations.
"Over recent weeks we have been working closely with all our stakeholders to attempt to resolve the situation and we are continuing to do so."