Search for construction firm buyers after loss of 180 Macroom jobs

THE search began yesterday for buyers for an award-winning construction firm which has collapsed with the loss of 180 jobs.

Delta Off Site Solutions based in Macroom, Co Cork, which made bathroom and kitchen pods for the construction industry, announced its immediate closure on Wednesday.

It is understood the firm collapsed with debts of over €5 million. It also owes the Bank of Scotland a substantial seven-figure sum.

Despite Delta’s failure to find investors, it is hoped that the company will be sold within months.

Delta was set up in 2002 and had a turnover last year of €17m.

It had been struggling for the last several weeks and laid off its workforce temporarily two weeks ago.

But Macroom was dealt its third major jobs blow in five years when, on Wednesday, Delta management invited Bank of Scotland to appoint a receiver.

The bank engaged financial consultants, Grant Thornton, a firm with a specialist forensic accounting and investigation section. One of its partners, Paul McCann, confirmed last night that he has been appointed receiver.

He said he would meet potential buyers over the next couple of weeks.

Mr McCann said that limited production would continue over the coming weeks, which would help him sell the firm as a going concern: “You get best value for most businesses if you sell it as a going concern. The limited production over the next few weeks will give potential buyers the opportunity to see the plant. “It’s certainly much better than seeing an empty plant.”

Irish and international buyers will be canvassed.

“If there’s a buyer out there, I’ll find them,” Mr McCann said.

Delta had good blue chip clients and a good product, he added.

“It was in its infancy and sometimes you have casualties. But off site production is the way of the future.

“They have a fine facility and a skilled and talented workforce. Hopefully we’ll have a buyer.”

The business is being valued at the moment.

Meetings with management, customers and creditors will be scheduled over the coming days.

Meanwhile, the Government pledged yesterday to find new jobs for Macroom.

Enterprise Minister Micheál Martin said he would seek support for other investment in the area.

Three Fianna Fáil TDs — Donal Moynihan, Michael Moynihan and Junior Minister Batt O’Keeffe — will be running for election in the three-seat constituency next year.