Monday, December 10, 2007

Market Slowdown starts to hurt

Longford developers and builders are starting to feel the effects of the slowdown in property sales with one local firm going out of business.

From the Sunday Business Post,

Building firm collapses with €1.5m debts 09 December 2007

A midlands construction company has collapsed with debts of almost €1.5 million. James Gerety Construction, a Longford-based contractor, went into liquidation last week after running into cashflow difficulties. The company owes the Revenue Commissioners more than €100,000. The company tried to restructure its finances to overcome the recent slowdown in the construction sector. However, the directors ultimately decided to convene a meeting of the firm’s creditors, during which the company was wound up. Declan Taite, a partner with accountancy firm Farrell Grant Sparks (FGS), was appointed liquidator. Taite will examine the background to the company’s collapse and distribute its remaining assets. According to its statement of affairs, circulated to creditors last week, builders’ merchants Brooks is owed almost €100,000. Kiernan Roofing and Midwestern Electrical are owed €58,000 and €42,000 respectively. The company is owned by James and Theresa Gerety of Gowan, Co Longford. The company had a turnover of more than €7 million and retained profits of €50,000 at the end of last year. It worked as a contractor on a number of social and affordable housing developments in the Longford area.