News that a locally-based contractor responsible for multi-million pound developments across the country has fallen into administration has shocked Nottingham, with concerns raised about another half-finished building on the city skyline.
NMCN plc, which was established in 1946, is headquartered in Huthwaite.
It is in the process of building a 522 student bedroom complex in Traffic Street in the city worth £35m.
City Council Leader, Cllr David Mellen, said: “We are sorry to hear about NMCN going into administration. They are involved in delivering a number of important private developments in the city whose delay will limit the availability of much-needed housing.”
Previous projects by the Sutton-in-Ashfield firm included the redevelopment of York House next to Victoria Centre in Nottingham into student accommodation, the redevelopment of a brownfield site at The Old Brewery in Mansfield creating 75 new family homes and a £4m development at Fernwood School, Nottingham, including new classrooms, an assembly hall and changing rooms.
The company was the 12th biggest in Nottinghamshire as of 2019 with an operating revenue of 340,000 and more than 1,500 members of staff.
Cllr Mellen continued: “As a large local employer, it is also a blow for staff who have come through a difficult period in the construction industry.
“Our Nottingham Jobs service has help and advice on options and opportunities that may be available to them.”
The administration concerns the parent company of the group, NMCN PLC, and its NMCN Sustainable Solutions Limited subsidiary. The group said its other subsidiaries were not “currently” affected and that NMCN had received offers from interested buyers to take them over as going concerns.
Local reaction to the news brought concerns about what would happen to the unfinished Traffic Street building.
Nottinghamshire Live was unable to contact NMCN for further comment so its future is unclear at the moment.
Michael Thorpe, 50, from The Meadows and who works with young people, said: “It’s another waste of money.
“They could of built something better than student accommodation, there’s enough student places around the city centre.
“Something for young people or even housing or something.
“There’s a shortage of houses but they put loads of student places but not enough houses, more than anything for families, would be better spent there.”
Joe Stevenson, 27, freelance artist from Beeston said: “ Especially with the current state of so much in Nottingham, student accommodation seems to be an issue anyway because there’s so much of it.
“Obviously there is a lot of young people in Nottingham without housing and there’s homeless people. It just seems a waste.
“There’s also other properties in Nottingham that have been abandoned for years, near Sneinton market there’s a lot of old warehouse type properties and in lace market as well.
“So there’s properties all around Nottingham that have been sort of left to rot.”
Andrew Bannister, 56, works in construction from Newark. He added: “It’s a shame that the project won’t be completed.
“We have to hope then that there is another function that will be found for another building or for the site.
“Because what nobody needs is vacant accommodation in Nottingham.
“It does seem that there is a great deal of student accommodation has grown near the centre, especially around the old Market Square.”
According to reports by Business Live, the firm did not sign off its 2020 accounts or secure a re-financing of its business. As a result Grant Thornton has been appointed to oversee its administration.
While East Midlands Chamber of Commerce didn’t wish to comment on the news, data from its latest Quarterly Economic Survey for Q3 2021 said that when asked what was causing its members from the construction industry concern, the results were telling.
Of the business leaders surveyed, 72% listed problems in getting access to skilled labour as their main concern, and 68% said that they expected prices to rise, most of all in the cost of vital raw materials.
A statement from a spokesperson for NMCN, which stands for North Midlands Construction, said: “NMCN today announces that the board of the company, having taken advice, has concluded that the company is no longer able to continue trading as a going concern.”
“The board of NMCN wishes to thank all of its shareholders, customers and suppliers for their support over the years and particularly Svella and those who had intended to participate in the equity subscription that formed part of the Proposed Transaction, which has had to be cancelled.”
NMCN chiefly offered design, build, operation and maintenance services.
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