Northern Ireland’s internationally-renowned engineering and joinery firm, Mivan (No.1) Ltd, has become the latest victim to the tough business climate and has ceased trading as of Monday 27th January after being placed in adminstration earlier in the month.
The Antrim-based company employed 289 people and was the main trading company created from a restructuring of the group in 2012. Following an assessment of the business and a number of contracts cancelled by customers, 98 redundancies were made at Mivan on 17th January, with an additional 144 redundancies announced on 27th January. A small number of staff being retained to assist the administrators finalise some existing contracts which are close to completion.
Peter Allen of adminstrator Deloitte comments: “The company was traded for a period of two weeks, while expressions of interest in the business as a going concern were explored. We received a number of indicative offers, but unfortunately no purchaser was able to complete. Although the business will now close, we are hopeful that there will be meaningful interest in a packaged sale of the assets. We would like to thank the company’s employees for their support and professionalism during this time.”
Founded in 1975 by Dr Ivan McCabrey, while still an engineering student, Mivan focussed on high-end marine, domestic and contract fit-out work around the world. The company made its name by looking overseas for work in the 1980s completing a number of high profile contracts including Mivan being the largest contractor on Disneyland Paris; it worked on Saddam Hussein’s palaces; The Dome of the Rock mosque in Jerusalem, refitting the QE2 twice, the Scottish Parliament at Holyrood, theme park development work for Universal Studios in Orlando as well as premium domestic contracts for residential schemes in London’s Kensington and Fitzrovia.
But not all work that Mivan did paid dividends. Contracts for shopping centres in Romania may have contributed to its downfall as fellow investors pulled out leaving Mivan with a hefty debt burden.
Another low point came in 1992 when 90 staff working in Iraq were held hostage.
The company’s expertise and client portfolio had enabled it to garner many awards over the years and Mivan was also an active member with numerous trade associations. But this counted for little in the intensely competitive market for building and fit-out work.
In recent times, rival building and fit-out companies have merged in order to stand a better chance at landing contracts and tenders, having the effect of edging the relatively small Mivan out of the picture.
It had been hope that partnership with Lagan Group Holdings might help, but talks foundered. The onerous costs of taking Mivan as a trading business has widely been cited as the main reason which deterred interested parties – but it is reported that various parties are looking at elements of the business.
For further information, see this BBC report and video:
http://www.bbc.co.uk/news/uk-northern-ireland-25911205
