Work stops on MAC education job

Grant Prior 12 months ago

Work has stopped on a £5m education job in Birmingham being built by MAC Group after the contractor’s main Irish operation sought protection from its creditors.

An Interim Examiner was appointed to fit-out and construction firm MAC-Interiors Ltd last week.

MAC has offices in Birmingham, Dublin, London and Newry.

Site sources told the Enquirer work has stopped on its job to build a new educational facility at the Joseph Chamberlain College site in Birmingham.

One subcontractor said: “The project has been plagued by late payment problems for months and most subbies had pulled off site due to non payment of invoices.

“Work on the site has now stopped. It was due to be handed over a couple of months ago but has been delayed and delayed.”

MAC would not comment on the Birmingham site but said in a statement: “An Interim Examiner has been appointed to fit-out and construction firm, MAC-Interiors Ltd.

“Citing a combination of negative factors including significant losses on some of its UK construction projects, extreme challenges during the COVID period and rapid rises in raw material and labour costs over the last three years, the company has sought the support of an Examinership process to create the opportunity to bring in new investment while continuing to deliver existing work and plan for the pipeline of new projects it has on its books.”

Company founder and Managing Director, Paul McKenna said: “This is a difficult period for us as a company but we have acted responsibly and sensibly in order to create the opportunity for future stability and the safe delivery of the projects we are working on currently and those starting in the near future.

“We have been building MAC for over twenty years and we have taken this step because we believe strongly that we have the right team and the relationships with our suppliers and clients to come through this period with our business in a stronger position and our projects delivered on-time and on-budget.

“We will start work with the Interim Examiner immediately to help bring in new investment and to chart a positive way forward for the business.”

Kieran Wallace of Interpath has been appointed as the Interim Examiner for MAC-Interiors.

Latest results for the firm for the 18 months to June 30 2021 show a turnover of £116.6m generating a pre-tax profit of £1.9m.

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