Sammon liquidation to result in 200 job losses, putting school projects in doubt

A liquidator has been appointed to Sammon Contracting Ireland Ltd today in a development which will put the completion of a number of school projects in doubt.

This will result in more than 200 staff losing their jobs, most of whom are employed locally in Kilcock, Co Kildare.

The company, part of the Sammon group, was placed into liquidation after the Examiner to the firm, Michael McAteer, made a petition to the High Court to have the company wound up.

UK construction company Carillion collapsed in January, owing millions of euro to the Irish firm.

Sammon went into Examinership in April after the suspension of the Schools Bundle 5 PPP project, a scheme in which Sammon had been appointed as sub-contractor to build five schools and an Institute of Further Education.

Miceál Sammon, Founder and CEO of Sammon Group said today: “This is a painful and distressing time for all of us who work in the business, including our wonderful staff, management, my family and myself personally. I deeply regret the financial and commercial impact that this development has had on our loyal suppliers and sub-contractors.

“The collapse of Carillion and the sudden suspension of the major Schools Bundle 5 PPP Project placed us into a perfect storm."

Mr Sammon said it was "highly improbable" that the schools would be open by the coming school year, and said the company was in "an irrecoverable position".

"We are devastated by the impact that this development has on everyone associated with our company - both personally and professionally," he said.

Responding to the news, Minister for Education and Skills Richard Bruton said he "regretted" that the firm would be going into liquidation and said it was a "particular blow" to the company's employees.

Mr Bruton said a tender process to find a new contractor to complete the Schools Bundle 5 PPP Project was at an "advanced stage" and that every effort is being made to have some of the schools finished by September.

The Minister also confirmed that Sammon Contracting was involved in the construction of Maynooth Education Campus which consists of two new 1,000 pupil post-primary school buildings.

The project was due to be completed in May 2019, but following today's announcement, a new tendering process will need to begin to arranged.

- Digital Desk

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