Building firm Deerglen cease trading

BUILDING firm Deerglen has ceased trading and made its entire workforce redundant.

Deerglen turned the old abattoir into Liberty Wharf
Deerglen turned the old abattoir into Liberty Wharf

BUILDING firm Deerglen has ceased trading and made its entire workforce redundant.

The company, which has recently refurbished the new State Street offices on Green Street roundabout and converted Liberty Wharf from a disused abattoir into shopping arcade, announced that it was being wound up this morning after 12 years' trading.

It is not clear how many staff the company employed, but it is thought to be around 15.

A statement released by Adrian Rabet, director of Moore Stephens Risk and Recovery Limited, said: 'The company, which completed some of the Island's most prestigious building projects, has reached a stage whereby it can no longer continue to trade without significant cash injections, which are not available in the current economic climate. Redundancies have been made in relation to all staff.'

It added that Moore Stephens was advising Deerglen (Jersey) Limited directors and revealed that the company was due to hold a creditors' winding-up meeting in the New Year.

'The directors have been attempting to find additional funding, but in the current economic climate they have been unable to do so and to their great regret they have been advised that there is no alternative but to take the course of action they have,' Mr Rabet said.

'All the staff have been advised of their rights under the new Social Security insolvency regime and they will be given all the assistance to claim the benefits due to them in accordance with the law.'

Full report in Wednesday's JEP

Comments for: "Building firm Deerglen cease trading"

Peter

An example of the serious problems that this Island faces. Sadly we have a Government that puts puffins before people.

Lowe

Peter, why say that, some of the puffins where there before you:-)? Companies like this go bust every day and it's just the beginning. Jersey has been making the wrong decisions for decades, especially when it comes to building. It's either trying to be modern but it isn't & mostly of poor quality, or just stuck in the 60's and old fashioned. Keep the bit of nature you have left and maybe start working on the things that went wrong over the past 30 years.

the future

I had a dream where Le Masurier, The Esplanade, The Brewery and The Odeon got planning permission, St Helier looked like it was ready for the 21st century and the economy was thriving.

I woke up and the north of St Helier belonged to a failing economy and it shows, shame that dream could not be shared with those at planning.

D De Jersey

I've gotta admit to not agreeing with Freddie on a quite few things he let through.

I would suggest that he wouldn't have let this slide though.

The Duhamel/Scate double act have been a disaster for the island construction industry and there is nothing we can do about it until the next election. (Except moan on This is Jersey of Course)

Overpopulated

As has been said before on other news items, there plenty of building permissions granted.

There is no point in building houses/flats/offices if they cannot be sold or let.

the future

To a certain extent I agree with you, there are other permissions granted but they are all with the same people.

New developers building large developments in St Helier would break the virtual monopoly currently in place.

Some of these companies have the cash in hand and will start building almost straight away. I only see this as a win win situation.

jersey girl

To all the people who want the ordinary tax payers of the island to pay for Plemont - would you appropriate some of your millions to the these people - and others - who have lost their jobs? I want my tax money to go to local people and their families who have lost their jobs because of economic times - not to a scheme that only the islands millionaires and ageing hippies want because they dont need to work. it was interesting to read the advert in the jep yesterday with all of the substantially wealthy residents who have put their names to the plemont buy out. An easy solution would be for each of these people to donate a million each and the job would be done - especially as they are the only ones who have the time to use it. Then, the tax payers money can be used to help people and their families who have lost their jobs and to get the economy moving. The Plemont buy out is ridiculous in this day and age. look after ordinary people. Let the millionaires look after themselves - after all, Jersey has help them keep their money!!!!

Archie Rondel

No surprise there. The word in the building industry months ago was they were in trouble. ie not paying their bills or workers on time,and not having any projects in the pipeline.BUT ,they are not the only company on the brink. Another big IRISH developer is up to their neck in debt ,to the tune of £95million,and could quite soon up tools and scarper. No names,but you know who I am talking about.

Robert

Very sad time for those 15+ families as they face an uncertain future in the run up to Christmas!

Gino Risoli

The next inline will be the planning department, that will save us a few billion.

mallouin

How about a little empathy here for the workers made redundant and why just before Christmas.I am aware that our financial year starts in January but for goodness sake why do firms do this before Christmas? My thoughts are with the families.

As an aside am I alone in thinking this is almost inevitable as our contruction industry is too large?

mortgage free

The construction industry is too large and too greedy. Nearly every new build starts at around £7000000, there are 2 new houses by where I live both are over 1 million, one is occupied by the builder and the other has been empty since construction about 9 months ago. It's about time new build, empty houses were liable for double rates.

Steve

Mortgage free - you are soooooo wrong.

Builders do not make massive profits (max 2 or 3%). The greedy ones are the people selling land.

Developers in the current climate are not making much either. They take a massive risk when investing.

£2m racks up a huge interest payment over a year and the developer has to fund the ongoing costs of water, electric, rates etc - any house left unsld for a year will not provide a return.

Would you invest that sort of money for little or no return?

Mario

I was led to believe it is a 3 way split.

1/3 for the land owner.

1/3 for the costs of building.

1/3 for the developer.

I can't see developers taking that sort of risk for 2%. You get more in the bank which is a lower risk at present.

Pip Clement

I suspect that the malaise gripping the island is deeper than a mere lack of planning permission.

World recession, high fuel prices, static wages for the majority and cuts all round.

The Jersey economy is poorly but the situation is one of rude good health compared to the UK and Greece does not bear thinking about.

There are a few growth areas but they are few and far between.

Jersey cannot do it on it's own, we need world growth to pull us out of the mire.

Simple Sid

Tip of the iceberg there will be more to come look out for a difficult 2013.

Richard

How does Rob Duhamel keep his job?.....Everyone knows he is incompetent!

mallouin

No we don't!

steve wright

what about the revenue the old pontins made back in the day ! i am sure there were no complaints then. the place has now been a development for years ,so why not re develop? i only wish if it does go ahead it goes to a jersey company like ac mauger or another proper local company