Limerick-based building group Roadbridge goes into receivership

Past projects by Roadbridge include the construction of the Limerick Tunnel. Limerick Tunnel Toll Plaza. Picture: Dan Linehan

Limerick-based building group Roadbridge has said it will go into receivership, putting 630 direct jobs at risk.

Roadbridge requested its main creditor Bank of Ireland to appoint receivers to the company as it could no longer battle "insurmountable financial challenges". 

The receivers are Stephen Tennant and Nicholas O’Dwyer of Grant Thornton.

“We have been working tirelessly for the last number of months to find a solution to the grave challenges faced by the company. My fellow directors and I greatly regret having to take this step, but unfortunately, it was the only possible option at this time,” Roadbridge chairman Aidan Murphy said in a statement.

"The board recognises the support of all our stakeholders, including our bank, Bank of Ireland, in difficult circumstances as the directors explored every opportunity to save the company."   

Tánaiste Leo Varadkar described the news as "extremely concerning". 

"My thoughts are with the employees, many of whom I know dedicated their entire careers to the company," said Mr Varadkar, who is also the Minister for Enterprise, Trade and Employment.

“We are still gathering the full information. I have asked my officials and those in Enterprise Ireland to engage with the company as a matter of urgency.

“Again I am very aware of how disappointing this news is for the company’s hundreds of employees and the wider community. The Government is on hand to help in whatever way it can.”

'Work with receivers'

The company said it would work with the receivers "to get the best possible outcome for employees, creditors, and stakeholders".       

Roadbridge reportedly owes tens of millions of euro to Bank of Ireland. 

Past projects by Roadbridge include the construction of the Limerick Tunnel and the new north runway at Dublin Airport. 

The company has operations in Ireland, Britain, and Europe and has worked on some projects in the Middle East. 

The company was founded by the late Pat Muclair. Members of the Muclair family remained as directors. It was set up in 1967 and is a major employer in the Limerick region.        

The company was reportedly trading on tight profits, leaving the firm with no buffer to deal with risks.

Roadbridge has faced big management changes in recent times. It was reported that Roadbridge chief executive Conor Gilligan had left the firm after 31 years. Chairman Robert Dix had also stepped down from the company last November. A number of directors and employees did not respond to messages.         

The company had once estimated that revenues in 2021 would reach around €300m. It had posted revenues of €263m in 2020. 

Rival firms expressed regret over the receivership.             

“The challenge of extreme inflation in steel and fuel prices, in particular, may well have been part of the final challenge that they were facing,” said a spokesperson for Sisk.