Fitzroy, Falmouth concern as Midas 'considers administrator'

Residents were moved out of the Fitzroy during the Summer after developers Pegasus, part of the Lifestory group which built the luxury apartments on Cliff Road, said "extreme weather" experienced since The Fitzroy was completed had meant a number of the windows that were originally fitted in the homes were leaking.

The building originally opened to residents in 2019 with apartments starting at around £375,000.

It said detailed investigations were being carried out to allow a works programme to be put in place to repair the damage and replace the windows to ensure they can withstand the 'harsh' Atlantic conditions.

The work was given to Midas Construction Ltd to carry out as they were the original contractor and scaffolding went up on the front of the building where it has remained with no sign of any work being carried out for weeks.

On Friday Construction News reported that the £290m-turnover company filed the notice for itself and its main subsidiary Midas Construction Limited. Such a notice typically means a company will formally appoint an administrator within ten days, unless it can find an alternative financial solution to its problems first.

The website said that concern for the company's future had mounted this week after reports that work had halted on a number of projects. The company said its projects had been affected by the pandemic, Brexit, and labour and material inflation and shortages.

A spokesperson for Midas told the Packet in a statement: "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 are providing challenges in the construction sector and across the UK economy, which have had a direct impact on Midas’s own operations.

"Over recent weeks we have been working closely with all our stakeholders to attempt to resolve the situation and are continuing to do so.

"On Friday January 28, 2022, the company filed notices of intention to appoint an administrator in respect of Midas Group, Midas Construction Ltd and Mi-Space (UK) Ltd.

"This does not mean that Midas has entered into administration and the company continues to operate, while the Directors work to explore all available options to achieve the best outcome for the business and our people, our customers, supply chain partners and all our stakeholders.

"Midas is committed to pursuing an outcome that will achieve continuity for our live contracts and asks all our valued stakeholders to remain supportive of the Group at this time."

Concerns have also been raised about work by Midas on a £5.8m project in Penzance to build a dedicated workspace and a hub for creative businesses.

The hub, known as 'The Penzance Creative Cluster,' will provide up to 30 modern studios and flexible workspaces at Causewayhead for creative sector businesses, from high tech digital companies to visual and performing artists and forms part of a wider strategy to regenerate and reinvigorate Penzance town centre.

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Today the Fitzroy site remains empty, as it has done for many weeks, with the “Midas site office” sign plus one or two container-type accommodation/store units.

One nearby resident, who walks daily past the site said the scaffolding and sheet covering has been there for "goodness knows how long". "There has been precious little, if any, sign of activity, at least from the outside, for what seems like several months now," he said.

It is reported that the residents of the block were being "systematically" being temporarily re-housed group by group either to elsewhere within the building or to various other parts of the country, not county.

The Fitzroy was originally marketed as being in an incredible location, with a new collection of one-, two- and three-bedroom apartments with 'stunning' panoramic views of Falmouth Bay and the historic Pendennis Castle.

Designed by award-winning architects Allford Hall Monaghan Morris, The Fitzroy’s design was described as a: "Contemporary interpretation of the traditional grand hotels – such as The Falmouth Hotel and The Royal Duchy Hotel – on Cliff Road.

"The development rises to five storeys and has floor-to-ceiling glass windows, giving the building a glazed exterior and letting in plenty of natural light."

The building was the first of its kind to use sustainable cross-laminated timber, which, the company said, has minimised its carbon footprint.

The Fitzroy is available exclusively to people over 55.

In a statement Mike Gill, Regional Managing Director Midlands & North at Lifestory, which owns the Pegasus brand. commented: “We are extremely disappointed to learn that Midas has filed a notice of intention to appoint administrators.

"As the original contractor at The Fitzroy, appointing them to complete the remedial work was the only course of action available, however the business has since sadly succumbed to pandemic and Brexit-related shortages and costs which are unfortunately causing problems for a number of contractors across the country.

“As a matter of law, the notice of intention allows Midas a 10-day period of time within which to appoint an administrator or find another financial solution to the issues it currently faces.

"In the meantime, the wellbeing of our customers and the safety of their homes is our number one priority so continuing to deliver this programme of works to the highest standard and as quickly as possible is our core focus.

"We are therefore reviewing the full spectrum of options available to achieve this, whether through our existing supply chain or appointing a new contractor.

We understand this is a difficult time for our customers and are doing all we can to ensure they remain updated and would like to thank them for their continued patience.”