Construction giant Roadbridge, announced Friday it is to go into receivership, leaving the future of its 630 workforce and a further 1,000 indirect positions in jeopardy.
The Limerick-headquartered civil engineering an construction firm, which traded for over half a century, had been struggling to find an investor to rescue it after suffering serious financial difficulties, coupled with rising energy and building material costs.
“It is with regret that, as result of insurmountable financial challenges, the Board of Roadbridge Holdings Ltd announces that it has requested Bank of Ireland to appoint receivers (Grant Thornton) to the company,” read a statement released by Roadbridge.
Founded in 1967, it directly employs 630 workers across Ireland, the UK and Sweden. A further 1,000 indirect jobs will be negatively impacted, sources said.
Aidan Murphy, chairman of Roadbridge, said: “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.”
“The board recognise 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.
“We are committed to working closely with the receivers now in order to get the best possible outcome for employees, creditors and stakeholders,” Mr Murphy added.
'Major blow'
Roadbridge staff were pulled off a number of projects and informed of the news, including those working on the €58 million Coonagh Knockalisheen road.
The project is a key element of the Limerick regeneration of Moyross to help facilitate the future commercial residential and recreational development of the disadvantaged Limerick city north side estate.
“It’s a major blow, shocking news, and it’s very worrying time for all the workers and their families,” said Limerick Fine Gael TD Kieran O’Donnell.
“This is their livelihood, and they should be the priority for the receivers and the Government.”
The Limerick politician said he discussed the bleak outlook for the “630 direct workers and the further 1,000 indirect jobs” with the Tánaiste and Minister for Enterprise Trade and Employment, Leo Varadkar.
“The Government stands ready to support the workers,” Mr O'Donnell added.
“Roadbridge is synonymous as an institution in Limerick and I cannot underestimate the impact this will have on the workers, and on the entire mid west region.
“It is a very difficult day for the workers, and we need to hear from the receivers now and what they’re intentions are.”
'Really concerned'
Roadbridge, which recently completed the new north runway at Dublin Airport, are reported to have a contract order book of around €900 million, however existing projects and future projects were in doubt.
The company, which has built motorways, wind farms, factories, data centres and more, was also engaged in a modular social housing project in Moyross, however it was uncertain when workers would return to the site.
Limerick Labour councillor, Conor Sheehan said he was “really concerned” the news may result in the Moyross road project “being delayed for up to two years” and he called on the Department of Social Protection “to put in place a specialist team to deal with any redundancies”.
A spokesman for Roadbridge confirmed the board of the company had placed Conor Gilligan, the firm’s long-serving and highly respected chief executive, “on gardening leave on the 14th of February and his duties ad responsibilities were discharged by the COO Pat McCarthy from that date”.
Mr Gilligan told Irish Building Magazine last October: “Our order book is secured for the next three years and the future is bright.”
However, he also noted a skills shortages in the industry and “prices for materials have gone up significantly in recent months”.
He continued: “what we have seen in the past 20 years is too much emphasis on trying to levy the contractor with all of the risk on a project, risk should be apportioned to those best able to manage it; it is not a sin for a contractor to make a profit, there needs to be structures in place within government procurement that allows for this”.
Concerns had been expressed after the company, which owes €36 million to its main creditor Bank of Ireland, began pulling workers off sites Thursday.
“Roadbridge have been under severe pressure in recent months looking for an investor, and they were trading on the back of tight profit margins,” added a source.
'Matter of urgency'
Commenting on the news on Friday evening, Tánaiste Leo Varadkar said he has asked officials in his department to engage with the company as a matter of urgency.
“Today’s news that Limerick based construction company Roadbridge has entered receivership is extremely concerning,” Mr Varadkar said.
“My thoughts are with the employees, many of whom I know dedicated their entire careers to the company.
“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.”
The receivers Grant Thornton could not be immediately reached for comment.
